New Delhi: The Ministry of Labour and Employment has released the AICPI-IW index for 2025. This index is used to calculate the Dearness Allowance (DA) for government employees. Given the current trends, it is expected that the salaries of existing central government employees may increase before Holi.
Good news for employees and pensioners
Not only existing employees, but also retired central government employees may receive good news from the government before Holi. A 2 per cent increase in Dearness Allowance (DA) and Dearness Relief (DR) is expected from January 2026.
After the release of the December 2025 All India Consumer Price Index-Industrial Workers (AICPI-IW) data, it is being estimated that the government may increase the Dearness Allowance (DA Hike) and Dearness Relief (DR Hike) by 2 per cent each. The central government may announce this before March. It should be noted that the term of the 7th Pay Commission ended on December 31, 2025, but until the recommendations of the 8th Pay Commission are made and implemented, the DA will continue to be calculated on the basic pay of the 7th Pay Commission.
2 per cent hike in DA is expected
All India Consumer Price Index-Industrial Workers (AICPI-IW) is an index that reflects the changes in the prices of various goods and services over time. The Ministry of Labour releases it every month. The central government determines the DA based on the 12-month average of this index.
In December 2025, the AICPI-IW was 148.2, and its 12-month average is 145.54. After the calculation, the DA comes out to approximately 60.33 per cent. The current DA is 58 per cent, so a 2 per cent increase is possible. Since the government usually announces the DA in round figures, the DA may be settled at 60 per cent. Based on the AICPI-IW data for June 2025, the government had increased the DA by 3 per cent in October 2025. At that time, the DA increased from 55 per cent to 58 per cent. This time, a 2 per cent increase in DA is expected.
The central government usually announces the DA for January in March, so it is expected that the announcement will be made in late February or early March. Holi is on March 4th, so there is a possibility of receiving good news from the government before March 4.
