DA Hike Alert: AICPI-IW Unchanged in December, 5% Increase Expected for Central Govt Employees
Personal Finance
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CNBC TV18•01-02-2026, 11:06
DA Hike Alert: AICPI-IW Unchanged in December, 5% Increase Expected for Central Govt Employees
- •The All-India Consumer Price Index for Industrial Workers (AICPI-IW) remained stable at 148.2 points in December 2025.
- •This stability fuels expectations of a 5 percentage point Dearness Allowance (DA) increase, potentially raising the total DA to 63%.
- •The CPI-IW is crucial for revising DA, protecting salaries and pensions from inflation, and is compiled monthly from 88 industrial centers.
- •Year-on-year inflation based on CPI-IW decreased to 3.13% in December 2025, down from 3.53% in December 2024.
- •The anticipated DA hike, usually announced around Holi, will benefit millions of central government employees and pensioners.
Why It Matters: Central government employees and pensioners can expect a 5% DA hike, bringing the total to 63%, after stable AICPI-IW data.
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