Like a tide guided by unseen moons, inflation’s math nudges salaries upward once again. DA Set to Rise as Inflation Index Holds Firm Central government employees and pensioners are likely to see a fresh boost in dearness allowance (DA), with a proposed hike of 5 percentage points, taking the total DA to 63 percent. This follows the Ministry of Labour and Employment’s decision to retain the All India Consumer Price Index for Industrial Workers (AICPI-IW) at 148.2 for December 2025. The AICPI-IW is the core metric used to adjust DA, ensuring that salaries and pensions keep pace with rising prices. “With the Centre keeping the AICPI-IW index unchanged at 148.2, the dearness allowance will be raised by 5 percent. This means the DA will be hiked 63 percent,” said Manjeet Singh Patel, president of the All India NPS Employees Federation. The revision is scheduled for January 2026 under the biannual DA cycle. Earlier, the government had raised DA from 54 percent to 58 percent in July 2025. As per established practice, the Centre is expected to formally implement the hike in March or April 2026, with arrears paid from January and reflected in April salaries. The calculation underpinning the hike… Read MoreBusiness Archives – Trak.in – Indian Business of Tech, Mobile & Startups
