The 7th Pay Commission’s duration had come to an end on 31 December 2025, marking the end of one of the most prominent pay revision cycles engineered for the employees of the Central Government and its pensioners. The approach towards the end of 2005 would witness the focus move towards the last DA hike under the 7th CPC before smoothly initiating the build-up for the emissary of the 8th Pay Commission taking effect notionally from 1 January 2026.
The Last DA Hike under 7th Pay Commission
DA enhancement under the 7th Pay Commission is the last for the period starting 1 January 2026. QAICPI-IW data for November 2025 shows that DA is up from 58 percent to 60 percent, which is a little over 2%. This small increase could be helpful to the employees and pensioners dealing with inflation during this period of transition.
| Period | DA Rate | Increase |
|---|---|---|
| July–December 2025 | 58% | – |
| January–June 2026 | 60% | +2% |
The formal order is expected in March–April 2026, with arrears credited retrospectively from January.
Financial Impact of 2% DA Hike
The Employees receive an estimated ₹29,000 of DA, whereas the entire dearness allowance is calculated at ₹30,000 per month. There seems to be no arrear increment benefiting the employees by ₹12,000 on an annual basis. Now that the pensioners are secure, they will enjoy all the DA they can in the salary. It will make them stronger in front of the medical, essential household, and family needs. The total number of employees and pensioners benefiting directly comes to above 50 lakh employees and 69 lakh pensioners.
8th Pay Commission
A pay commission is already in place and working on recommendations. The report is expected by the second half of 2027. The total DA up to 31.12. 2025 that is about 60-63 per cent will be put into new pay against the fitment factor. From this December 2025, the new day starts from zero after the DA merger. There will be no adoption of any relief immediately after this point.
Arrears and Payment Expectations
The dearness allowance arrears for January 2026 will be paid as one lump sum within the salary following the order. The larger arrears from the 8th Pay Commission will probably come in instalments only after their recommendations have been approved and implemented.
What Should Employees Do Now?
Keep bank details updated for smooth arrears credit. Use online DA calculators to estimate your increase. Monitor official DoPT, Finance Ministry, and Railway Board notifications for the exact order and dates.
The 7th Pay Commission Latest Update 2026 brings a stable final hike and sets the stage for bigger revisions ahead. This transitional period ensures continuity while promising improved pay and pensions under the new commission.
Also read: EPFO New Rules 2026: Digital Upgrade, Faster Claims and Pension Relief