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DA hike big update: Modi government likely to hike dearness allowance to 63 percent, AICPI-IW data signals…
DA hike big update: Modi government likely to hike dearness allowance to 63 percent, AICPI-IW data signals…
New Delhi: Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2026-27 tomorrow. This will be the ninth consecutive budget presentation by Sitharaman. In the Union Budget 2026, the middle class's biggest hope rests on a restructuring of income tax slabs. Rising inflation over the past few years has strained household budgets, and keeping this in mind, experts believe that Finance Minister Nirmala Sitharaman may increase the slab limits. Amid all the discussions, a major update has emerged for the Central Government employees regarding the Dearness Allowance (DA). The Central Government revises DA twice every year, and the way is now clear for an increase effective from January.
It is important to note that any hike in DA is decided only after the release of the AICPI-IW index (All India Consumer Price Index for Industrial Workers) data. This data has now been released, and based on it, the final decision on the DA hike is taken.
Notably, the Modi government has kept the AICPI-IW index unchanged at 148.2 for December 2025, the same level as in November. In view of this, it is now being speculated that the government may announce the maximum possible increase in Dearness Allowance.
Manjeet Singh Patel, President of the All India NPS Employees Federation, said, “The Central Government has kept the AICPI-IW index unchanged at 148.2, which means a 5 percent increase in Dearness Allowance is possible. This implies that DA will rise to 63 percent.”
The All India Consumer Price Index for Industrial Workers (AICPI-IW) is a key input for revising Dearness Allowance for central government employees and pensioners. This data is used to determine the exact percentage increase in DA.
DA (percent) = 100 Existing DA (percent)
Source: Msn.com
Source: OfficeNewz
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