DA hike news: Has the government announced it yet? Latest update for central employees

Expectations were high that the Union Cabinet, led by Prime Minister Narendra Modi, would approve a hike in Dearness Allowance (DA) for central government employees during its weekly meeting on Wednesday, the last such meeting of the month. However, no such announcement was made. The DA hike is now expected to be announced in April.

According to the December 2025 data released by the Labour Bureau, the AICPI-IW index stood at 148.2, showing a rise of 0.5 from November. The 12-month average AICPI-IW (Jan–Dec 2025) is 145.54 and is used to estimate the hike in DA.

Based on the 12-month average AICPI-IW data, the DA hike for January 2026 is expected to be around 2%. If implemented, DA may rise from the current 58% to 60%, though the final figure will be confirmed only after the official announcement.

The DA percentage is calculated using the formula:
DA % = [{12-month average of AICPI-IW (base year 2001) – 261.42} ÷ 261.42] × 100
To align the newer 2016 base index with the 2001 base, the AICPI-IW value is multiplied by a conversion factor of 2.88, derived from Labour Bureau data.

Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners help offset the impact of rising inflation. These are calculated using the 12-month average of the All India Consumer Price Index for Industrial Workers (AICPI-IW), ensuring periodic adjustment in salaries and pensions.