DA News: Possibility of DA Hike from January 2026! Analysis of the New AICPI Data

DA News: A very important piece of news has emerged for central government employees. According to recently released data from the Labour Bureau, a bright possibility of a Dearness Allowance (DA) hike has emerged from January 2026. A new press release has been issued on this matter, bringing a wave of hope among government employees. Let’s delve into the details of this entire issue.

New Press Release and AICPI Statistics

As every month, the Labour Bureau, under the Ministry of Labour and Employment, has published the All India Consumer Price Index (AICPI) statistics for August 2025, which were released on September 30, 2025. The Dearness Allowance for government employees of the central and various state governments is determined based on these AICPI figures.

• August Statistics: The AICPI for August 2025 increased by 0.6 points to stand at 147.1. In July, this figure was 146.5. This consecutive monthly increase in the AICPI has strengthened the possibility of a DA hike.
• DA Calculation: The current DA rate has reached 58.94%, which is very close to 59%. The AICPI data for the remaining four months—September, October, November, and December—is yet to come. The final percentage of the DA hike for employees from January 2026 will be determined based on the statistics of these four months.

Possibility of DA Hike and the Pay Commission

According to experts, the DA rate could increase by 2 to 3 percent in the coming days. However, there is also a possibility of a new Pay Commission being implemented from January 2026. If a new Pay Commission is introduced, the DA calculation might start afresh, similar to what happened during the 7th Pay Commission in 2016.

• Impact of the Pay Commission: If there is a delay in the formation of the Pay Commission, central government employees may continue to receive DA at an increased rate from January 2026. After the implementation of the 7th Pay Commission in 2016, the DA was reset to zero, and employees received a 2% DA from July of that year. If the formation of the commission is delayed this time, the chances of the DA being reset to zero are low.

Relevance for State Government Employees

This news is also extremely important for the government employees of West Bengal. The state’s employees have been demanding DA at the central government rate for a long time, and the matter is currently pending in the Supreme Court. It is expected that the verdict in this case may be announced by October. Therefore, every fluctuation in the AICPI is highly relevant for the state government employees as well.

At this moment, all government employees are eagerly awaiting the AICPI statistics for the upcoming months and the Supreme Court’s verdict. This prospect of a DA hike is expected to help boost the morale of the employees.

Source: Press Release of Labour Bureau of India