Govt Employees Eye 3-5% DA Hike in Jan 2026; Full Calculation Revealed

• AICPI-IW for November 2025 stands at 148.2, crucial for the Dearness Allowance (DA) revision due in January 2026.
• Employee organizations estimate a 3% to 5% DA hike, depending on the All India Price Index for Industrial Workers (AICPI-IW) for December 2025.
• A 3% hike is likely if December's AICPI-IW is 147; a 5% hike is possible if it remains around November's 148.2.
• Example calculations show a 5% DA increase could add approximately ₹2,500 per month to a basic salary of ₹50,000.
• The 8th Pay Commission's recommendations on the fitment factor, determining future basic salary increases, are expected 18 months after November 2025.

Why It Matters: Central government employees anticipate a 3-5% DA hike in January 2026 based on AICPI-IW data.