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DA Hike January 2026: Central Govt Likely To Receive 2% Increase In Dearness Allowance
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DA Hike January 2026: The Union Cabinet is expected to clear the DA revision in early March 2026, possibly in the first or second week, ahead of Holi.

DA Hike January 2026: If 2% hike approved, DA and dearness relief (DR) will rise from the current 58% to about 60% of Basic Pay.
DA Hike January 2026: Central government employees and pensioners are likely to see only a marginal increase in dearness allowance (DA) from January 1, 2026, with the hike expected to be capped at 2%. If approved, DA and dearness relief (DR) will rise from the current 58% to about 60% of Basic Pay, marking a restrained start to the 8th Pay Commission phase.
The Union Cabinet, headed by Prime Minister Narendra Modi, is expected to clear the DA revision in early March 2026, possibly in the first or second week, ahead of Holi. This will also be the first DA hike after the formal conclusion of the 7th Pay Commission on December 31, 2025.
Inflation numbers leave little room for a higher DA
The final DA calculation hinges on the All-India Consumer Price Index for Industrial Workers (CPI-IW) for December 2025, released by the Labour Bureau. The index remained unchanged at 148.2 points, mirroring the November reading.
With December data in place, the 12-month average CPI-IW for the July–December 2025 period stands at 419.17 points. Applying the existing 7th Pay Commission formula, the DA works out to 60.34%. Following established convention, the government is expected to drop the decimal and notify DA/DR at 60% with effect from January 1, 2026.
Smallest increase seen in several years
A 2% DA hike is relatively uncommon and has been witnessed only a few times in the past decade. The last such low increases were recorded in July 2018 and January 2025.
As a result, the upcoming January 2026 revision will be among the lowest DA hikes in more than seven years, even though inflation has remained elevated rather than easing sharply.
A transition-period DA hike with long-term consequences
The January 2026 DA revision carries greater weight than usual because it comes during a transition between two pay commissions. The 7th Pay Commission has completed its tenure, while the 8th Pay Commission, though constituted, is still in the early stages of its work.
There is no clarity yet on when the 8th Pay Commission’s recommendations will be implemented. With the commission having up to 18 months to submit its report — and the government typically taking additional time to examine it — actual pay and pension revisions may only come by late 2027 or early 2028.
Why slower DA growth is worrying employees
Employee unions are increasingly concerned that subdued DA increases now could limit salary revisions later. When a new pay commission is implemented, the prevailing DA is usually merged into Basic Pay, and DA is reset to zero.
With DA expected to touch only 60% in January 2026 and rise gradually thereafter, the quantum available for merger under the 8th Pay Commission could remain modest. This is why expectations around the fitment factor are now more conservative, with estimates clustering around 1.60.
Lower DA at the time of merger can permanently cap revised Basic Pay and pensions, making even small differences in DA levels significant over the long term.
DA revisions before 8th CPC will set the base
The DA hikes due in January 2026, July 2026, January 2027 and July 2027 will collectively determine the DA level that eventually gets merged into pay when the 8th Pay Commission structure is rolled out.
This makes the January 2026 hike, despite being limited to 2%, an important building block for future salary and pension calculations.
Unclear rollout timeline adds to anxiety
In earlier pay commission transitions, implementation timelines were more predictable. The 7th Pay Commission, for instance, came into effect from January 1, 2016, immediately after the end of the 6th Pay Commission.
This time, the government has not committed to any effective date for the 8th Pay Commission. A question raised in Parliament during the Winter Session on whether revised pay scales would be applicable from January 1, 2026 did not elicit a clear response, adding to fears of a prolonged gap period.
How DA is worked out
Dearness Allowance is designed to offset inflationary pressures on salaries and pensions. Under the 7th Pay Commission framework, DA is calculated using the formula:
DA (%) = (12-month average CPI-IW – 261.42) ÷ 261.42 × 100
DA is revised twice every year, in January and July, based on CPI-IW trends.
February 08, 2026, 13:53 IST
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Energy boss says China’s tech marks ‘golden opportunity’ for UK
The head of Britain’s largest energy supplier has warned that the UK risks being “left behind” if it fails to collaborate with China on renewable technology, suggesting that importing Chinese wind farm innovations could create thousands of jobs.
Greg Jackson, founder and chief executive of Octopus Energy, recently accompanied Sir Keir Starmer on a UK delegation to China. He emphasised China’s significant advancements in technology and renewables, which he believes could provide Britain with crucial energy security.
This push for closer ties follows Octopus Energy’s recent joint venture with Chinese firm PCG Power, marking its first expansion into China.
The agreement will enable Octopus to trade renewable energy within the world’s largest clean energy market.
Furthermore, Octopus has previously indicated its desire to deploy wind turbines from leading Chinese manufacturers across its UK projects, utilising the country’s renewable technology to enhance Britain’s capabilities.
However, these potential collaborations are set against a backdrop of ongoing national security concerns regarding China, following a period of strained relations between the two nations.
Mr Jackson told the Press Association: “However you feel about China, it’s the second-largest economy in the world.
“In many areas it’s setting the global pace because of its investment in research and development, and technology.
“There are many people concerned about China’s motives or the way in which it’s run, but … if you don’t look at how to work with them, then you’ll get left behind.”
He added that working with China and gaining access to its technology was a “golden opportunity” that has the potential to bring down energy bills, create jobs and help boost the UK economy.
He told PA: “We need to be prepared to defend our own sovereignty and ensure our own security while working and trading with countries who can make people in Britain better off.
“There’s this obsession with whether or not we’re helping their economy, but the reality is we need to help our own economy.”
In September last year, Octopus struck a deal to co-operate on wind farm projects with Ming Yang Smart Energy Group in China, which could pave the way for UK firms to bring Chinese turbine machinery into Britain for the first time.
Mr Jackson said the firm is hoping to start bringing the turbine technology over in the next couple of years, which is said to be around 30 per cent cheaper than from Europe.
“We would hope to create thousands of jobs here to produce some of the wind turbines that the UK is planning on building,” he said.
He insisted security would be the firm’s “number one priority” in rolling out the technology, but that the UK needs to take action to reduce its reliance on imported gas and bring the cost of bills down.
“We should work intelligently and carefully with the appropriate security frameworks,” he said.
“They’re opening up to us in an appropriate way and we need to think about how we’ll work with them here.”
Octopus, which has 7.6 million customers in the UK, overtook British Gas to become the UK’s largest energy supplier earlier this year, with a market share of 24 per cent.
It also has an AI-powered platform, called Kraken Technologies, which is used by other global energy retailers to improve customer service and billing and is valued at around £6.4 billion.
The Government last month said it was investing £25 million into Kraken through the British Business Bank (BBB) ahead of the division being spun out in the next few months.
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Rooftops could turn into landing pads as India eyes air taxis to beat traffic
New Delhi: A new report by the Confederation of Indian Industry (CII) suggests that setting up a pilot air corridor connecting Gurugram, Connaught Place, and Jewar International Airport could help India reduce travel time from hours to minutes. The model is seen as a high-impact solution to urban traffic congestion and could be scaled up across the country.
The report, titled Navigating the Future of Advanced Air Mobility in India, was launched by Civil Aviation Minister Rammohan Naidu Kinjarapu. He said India’s aviation sector is moving toward a “high-tech, multi-dimensional mobility ecosystem.”
One of the key highlights of the report is the use of rooftops as landing and parking sites for electric air taxis, known as eVTOLs. This approach could turn existing buildings into revenue-generating assets. As acquiring land for ground-based landing pads is costly, rooftops offer a faster and more affordable way to launch such services in cities like Delhi, Mumbai, and Bengaluru.
“The integration of Advanced Air Mobility reflects our commitment to innovation, sustainability, and world-class urban connectivity,” said Union Minister Kinjarapu. He added that the report provides a “timely and practical blueprint to realise a faster, cleaner, and more connected India.”
However, the report notes that current regulations do not permit regular commercial rooftop operations. To address this, it recommends forming a dedicated team within the Directorate General of Civil Aviation (DGCA) to develop safety and operational standards for these emerging technologies.
Amit Dutta, Chairman of the CII Task Force on Advanced Air Mobility, said the study helps turn the concept into reality. “By analysing a hypothetical Delhi-NCR corridor through structured modelling and regulatory scenario testing, this study moves from concept to operational assessment,” he said, adding that it addresses key regulatory, infrastructure, and airspace challenges linked to early AAM pilots.
The report also recommends initially using drones to transport cargo and medical supplies over distances of 50–100 km. It suggests regions such as GIFT City and Andhra Pradesh as testing zones, where relaxed regulations could support faster adoption. To enable this growth, CII has urged banks and government agencies to create dedicated funding mechanisms for air mobility infrastructure.
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Planning to buy a home? Check title and construction insurance under RERA
New Delhi: When buying a home, most people focus on price, location, and loan eligibility. But one important protection that often goes unnoticed is mandatory insurance under the Real Estate (Regulation and Development) Act (RERA). This insurance is meant to protect homebuyers from future risks related to property ownership and construction quality.
Under Section 16 of the RERA Act, builders are required to obtain insurance for the land title and the construction of the real-estate project. The developer must pay the insurance premium and transfer the insurance benefits to the buyer or the apartment owners’ association once the project is handed over.
This insurance becomes especially important if problems arise after possession — such as structural defects, construction damage, or legal disputes over property ownership. In such cases, the insurance coverage can help cover repair costs or financial losses.
If a builder fails to obtain or transfer this insurance, the risk shifts to homeowners. In recent cases handled by state RERA authorities, builders were directed to bear repair expenses themselves when mandatory insurance was missing, highlighting the importance of verifying insurance documents before taking possession of a property.
The broader goal of RERA is to bring transparency, accountability, and protection for homebuyers in the real-estate sector, which historically faced issues such as unclear property titles, project delays, and construction defects.
What buyers should check
Before accepting possession of a property, homebuyers should:
Confirm the project is RERA-registered
Ask for insurance documents related to title and construction
Verify handover paperwork and builder compliance
These checks can help prevent financial and legal problems later.
In simple terms:
Mandatory RERA insurance acts like a safety net for homebuyers, ensuring that if something goes wrong with the property after possession, there is financial protection in place.
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