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.