Budget 2026: Big DA announcement expected for Central Government employees

The AICPI data for December 2025 will be released on January 31, 2026. The DA calculation has already reached 59.94% till November; as soon as the December data arrives, 60% DA will be confirmed. The January 2026 DA could be the last important DA under the 7th Pay Commission. The foundation of the 8th Pay Commission will be laid on this number.

Central Government Employees to Receive Good News on Budget Day (February 1)! The next Dearness Allowance (DA) will be decided, changing the salary calculations.

The Labour Bureau will release the AICPI data for December 2025.

DA Hike News Budget Day, but this time, the real news for central government employees will be decided even before the budget speech. As soon as the Labour Bureau releases the AICPI data for December 2025 by the evening of January 31, 2026, it will become clear at what rate the Dearness Allowance (DA) will be locked from January 2026. And the indications are very clear that the DA is going to reach 60%.

Now the question is - is this just a 2% increase or a major turning point in the salary structure before the 8th Pay Commission?

AICPI data for December 2025 will be released on January 31, 2026

DA calculation has reached 59.94% till November

60% DA confirmed as soon as December data arrives

The January 2026 DA could be the last important DA under the 7th Pay Commission.

The foundation of the 8th Pay Commission will be laid on this number

DA is not just compensation for inflation; it is directly linked to basic pay, pension, and the 8th Pay Commission. January 2026 DA = Transition Point.

What does the AICPI data indicate?

The AICPI (All India Consumer Price Index - Industrial Workers) data reflects the direction of inflation in the country and the changes in retail prices of goods purchased by industrial workers (food, housing, etc.). This index is the main basis for calculating the Dearness Allowance (DA/DR) for central government employees and pensioners, which is revised every six months. In November 2025, the AICPI-IW was at 148.2.

The Labour Bureau will release the December 2025 AICPI-IW data.

As of November 2025, the DA based on the index has reached 59.94%.

Even a slight increase in December will take the DA directly to 60%.

This means the DA calculation is locked even before the budget.

Complete calculation of AICPI and DA

November 2025 AICPI-IW: 148.2

DA till November: 59.94%

December data (estimate): Slight increase

Potential DA from January 2026: 60%

A 2% DA hike is confirmed.