DA Hike: Will Central Employees Allowance Reach 68%?
New Delhi, November 2: The recent announcement regarding the Dearness Allowance (DA) for central employees has sparked discussions about a potential increase. The DA has seen a 3% hike, bringing it to 65%. This increase follows two increments earlier in the year, amounting to a total rise of 5% in 2026.
According to the Labour Bureau, the retail inflation figures for September 2026 have been released, showing the All India Consumer Price Index for Industrial Workers (AICPI-IW) at 155.4, which is one point higher than August’s figure of 154.5. This has led to speculation about whether the DA could rise to 68% in January 2027, depending on the average figures from January to December 2026.
The decision on the DA increase is based on the retail inflation rate over the past 12 months. The current DA was determined using the average AICPI-IW from October 2025 to September 2026, which averaged at 150.5, resulting in the recent 3% increase.
If the AICPI-IW remains above 155 in the coming months, a further 3% increase in DA is likely. However, if there is a decline, the increase may be limited to 2%. The final decision will rest with the central government.
This year, the DA has already been raised twice, with a 2% increase in January and a 3% increase announced on October 28.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.