DA Hike 2026: Central Govt DA Hike Confirmed for January 2026: 2 Percent Increase Expected based on AICPI Data

DA Hike 2026: A crucial update regarding salary increments has emerged for Central Government employees as they step into 2026. The Labour Bureau has officially released the All India Consumer Price Index (AICPI) for December 2025. This data serves as the cornerstone for determining the Dearness Allowance (DA) for government staff. Based on these latest figures, a clear picture has formed regarding the exact percentage of DA hike effective from January 2026.

Analysis of the Current AICPI Index

The AICPI index is the primary metric used to calculate the Dearness Allowance. The recently released data indicates that the index for December 2025 stands at 148.2 points. What makes this significant is that the index has remained stagnant compared to the previous month; the figure was exactly 148.2 points in November as well. This lack of fluctuation between November and December plays a direct role in the final DA calculation.

DA Calculation: Moving from 58% to 60%

The Central Government typically announces DA hikes based on the average of the index over a six-month period. For the January 2026 hike, the data from July 2025 to December 2025 has been taken into account.

• Current Scenario: Based on calculations up to June 2025, Central Government employees are currently receiving DA at a rate of 58%.
• The New Math: Taking the December index of 148.2 into the six-month average calculation, the exact DA percentage comes out to 60.35%.
• Final Outcome: As per standard government calculation rules, the decimal fraction is usually rounded down to the nearest whole number. Therefore, the figure of 60.35% will be considered as a flat 60%.

Impact on Employees and Growth Rate

According to these statistics, Central Government employees are set to receive a 2% hike in their Dearness Allowance starting from January 2026. This takes the total DA from the current 58% to 60%. While employees have witnessed hikes of 3% or 4% in some previous years, this 2% increase is a confirmed addition to their salary structure. It is important to note that while this directly impacts central employees, state government decisions often follow the central benchmark, although they depend on separate administrative and legal rulings.

This confirmation ensures that employees can expect a salary revision right at the beginning of the new year, based on the finalized inflation data.