DA Hike Update: Lakhs of central government employees who have been waiting for the announcement of the Dearness Allowance (DA) raise have a good news.
The optimistic outlook has been caused by the AICPI Index data computation. The final data for determining the calculation of Dearness Allowance and the foundation for determining the DA quantum will be the AICPI Index number for the month of December has come.
The figures for December 2025 AICPI index have been declared by the government that shows that there has been a good jump in the index. The All-India CPI-IW for December, 2025 remained at 148.2 points (one hundred fortyeight point two). AICPI index for November was also same (148.2 points) while that of October was at 147.7 points.
Year-on-year inflation for the month of December, 2025 stood at 3.13% as compared to 3.53% in December, 2024.
According to the latest figures, the total DA score was 45.58 percent, which has increased to 46.24 percent in June 2023, depending on AICPI index figures.
DA May Increase To 60 Percent
Media reports are abuzz with speculations that now central employees will be paid Dearness Allowance at the rate of 60 percent. The announced regarding the same will be made by the government in the month of March, reports have added. The recognised formula, which is based on the recommendations of the 7th Central Pay Commission, shall be followed in order to raise DA.
The Dearness Allowance of central government employees is revised twice a year. The first is given from January to June, while the second comes from July to December.
DA Hike May be announced in March
Meanwhile, it must be noted that till the new DA rates are announced by the government, the employees will be paid DA at the rate of 58 percent. However, once the Government announces a hike in DA, the increased amount will be paid along with the arrears.
DA increased in October 2025
The Union Cabinet chaired by the Prime Minister Narendra Modi in October 2025 has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f 01.07.2025 representing an increase of 3% over the existing rate of 55% of the Basic Pay/Pension, to compensate against price rise.
The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs.10083.96 crore per annum. This will benefit about 49.19 lakh Central Government employees and 68.72 lakh pensioners.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
