New Delhi: With the new year, good news is going to come for lakhs of central government employees and pensioners. To provide relief in this period of inflation, the government may soon announce an increase in Dearness Allowance (DA). The Ministry of Labor and Employment has released the All India Consumer Price Index of Industrial Workers (AICPI-IW) for November 2025, which has been recorded at 148.2. Let us tell you that on the basis of this data it is decided how much will be the increase in your salary and pension.
The central government revises dearness allowance twice a year in January and July. The last update was in July 2025, when DA was increased from 54% to 58%. Now all eyes are on the January 2026 update. Experts and employee organizations believe that if the index for December 2025 remains between 147 to 148, then this time a strong increase of 3 to 5 percent can be seen in DA.
All India NPS Employees Federation estimates that the data of December 2025 is going to be very important. If the December index remains around 147, then an increase of at least 3 percent in DA is certain. But, if it remains near the November level i.e. 148.2, then a lottery of employees may take place and dearness allowance may increase by 5 percent. This will bring more money directly into the pockets of the employees.
Let us understand how this increase will change your in-hand salary. Suppose the basic salary of an employee is Rs 50,000. At present he gets DA of Rs 29,000 at the rate of 58%. Now if DA increases to 61%, then this amount will become Rs 30,500 (i.e. a benefit of Rs 1,500 every month). At the same time, if the government increases it by 5% to 63%, then dearness allowance will become Rs 31,500, which will directly increase your monthly income by Rs 2,500.
Keep in mind that these figures are currently based on estimates and index trends. The exact announcement of DA, which will be implemented from January 2026, will be made only when the Labor Ministry releases the figures for December 2025. If we look at the old tradition, the Central Government makes the official announcement of dearness allowance to be implemented from January in the month of March or April, the arrears of which are also given to the employees.
While on one hand there is talk of DA, on the other hand the employees are also eagerly waiting for the 8th Pay Commission. The period of 7th Pay Commission has completed on 31 December 2025. It is expected that the 8th Pay Commission will submit its report on fitment factor in the next 18 months after its formation. The new basic salary will be decided by this fitment factor. The special thing is that when the new fitment factor is implemented, then dearness allowance will be reduced to zero and merged into basic pay. However, employee organizations have suggested that in view of inflation, instead of abolishing DA completely, a better way should be found to adjust it.
