New Delhi. The continuously increasing inflation in the country is badly affecting the budget of the common man. In such an environment, if there is news of increase in salary or pension, it is no less than a relief. The beginning of the year may bring similar good news for central employees and pensioners.

DA and DR may increase in January

Dearness Allowance (DA) of central employees and Dearness Relief (DR) given to pensioners are based on the Consumer Price Index of Industrial Workers i.e. AICPI-IW. Recently the AICPI-IW figure for November 2025 has been recorded at 148.2.

This index includes changes in the prices of goods and services to daily needs. Looking at the current trend, it is estimated that an increase of up to 5 percentage points in DA/DR may be possible in January 2026. However, the government will take the final decision only after the data of December 2025 comes.

Dearness allowance can reach 63%

At present, central employees are getting 58% DA, which was increased by 4% in July 2025. If there is a 5% increase in January, DA may reach between 61% to 63%. This will directly increase the monthly income of employees and pensioners, which can prove helpful in dealing with rising inflation.

How many people will benefit from this?

If the DA/DR increase is approved in January 2026, it will benefit more than 50 lakh central employees and about 69 lakh pensioners. In the current economic situation, this increase can play an important role in balancing household expenses.