Dearness Allowance (DA) is a key part of the salary for both the government employees and the retired ones. Besides, it is adjusted biannually in order to counteract the effect of inflation. The 8th Pay Commission has been given the green light to come into effect from the first day of 2026 and the employees are anticipating the changes in DA rates and the corresponding payment of the dues.
Reason for DA Arrears Significance
DA arrears represent the amounts that are owed to workers, which are paid at the time when a pay increase is granted but the increase is not yet effective. In 2026, if the recommendations of the Pay Commission get delayed, the employees will have a claim to the arrears from January, 2026 till the date of implementation. This is to ensure that no one will be deprived of the benefits that are being upgraded.
2026 DA Revision Timeline
The inflation data of 2025 is expected to be the basis for the first DA increase of 2026 which will probably be decided before Holi in March. If the Pay Commission takes a longer time setting its final decision, the amount of arrears will pile up for several months, which will result in a large payout for the workers and retirees.
8th Pay Commission Expected Impact
The 8th Pay Commission is going to significantly change the salary structure, the pension schemes, and the allowance system. The employees will get:
- Increased DA rates that are connected to inflation.
- Payment of the entire arrears starting from January 2026.
- Higher fitment factor for determining salaries.
DA Arrears 2026 Overview
| Aspect | Details |
|---|---|
| Start Date | January 1, 2026 |
| First DA Revision | March 2026 (before Holi) |
| Arrears Period | January 2026 – Implementation date (possibly up to April 2027) |
| Beneficiaries | Central government employees and pensioners |
| Basis of Calculation | AICPI-IW inflation index data from 2025 |
| Linked Reform | 8th Pay Commission recommendations |
Summary
The DA Arrears 2026 will be a significant factor in the improvement of the financial state of the government workers and retired ones. Besides payment reform, inflation adjustments will make fair remuneration possible throughout the transition period. Employees are advised to keep themselves posted on the official news to be aware of the precise payment dates and the way of calculating the amounts.