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Central Govt Employees Likely To Get 2% DA Hike Soon; Salary To Rise From January 2026

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Central Govt Employees Likely To Get 2% DA Hike Soon; Salary To Rise From January 2026


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The All-India Consumer Price Index for Industrial Workers rose by 0.5 points to 148.2, keeping the 12-month average firmly on track to take DA/DR to 60%, from 58% currently.

January 2026 DA Hike.

January 2026 DA Hike.

DA Hike January 2026, DA Hike Latest News: Central government employees and pensioners are set for a 2 percentage point hike in dearness allowance (DA) and dearness relief (DR) from January 1, 2026, with the latest inflation data pointing to the 60% DA/DR level under the 7th Central Pay Commission (CPC).

The trigger is the All-India Consumer Price Index for Industrial Workers (AICPI-IW) for November 2025, released by the Labour Bureau under the Ministry of Labour & Employment on December 31, 2025. The index rose by 0.5 points to 148.2, keeping the 12-month average firmly on track to take DA/DR to 60%.

November AICPI-IW confirms 60% DA trajectory

As per the standard DA formula used for the 7th Central Pay Commission, the rolling 12-month average of AICPI-IW (base year 2016=100) is used to compute the percentage increase over the base index of 261.42. With November’s reading, the calculated DA has reached 59.93%, effectively at the doorstep of 60%.

Month-wise calculations show a steady climb:

  • July 2025: 58.53%
  • August 2025: 58.94%
  • September 2025: 59.29%
  • October 2025: 59.58%
  • November 2025: 59.93%

Only the December 2025 index reading remains, but scenario analysis indicates that the outcome is now largely locked in.

December scenarios still point to 60% DA

Even under different assumptions for December inflation, the DA outcome does not materially change:

  • Index unchanged at 148.2: DA works out to 60.34%
  • Index rises to 150.2: DA increases to 60.53%
  • Index slips to 146.2: DA still holds at 60.15%

Since the Government of India announces DA only in whole numbers, any figure between 60.00% and 60.99% is officially rounded to 60%. This makes a 2% hike, from the existing 58% to 60%, almost certain.

When will the hike be announced?

While the DA revision takes effect from January 1, 2026, the formal announcement is typically made later. Based on past trends, employees can expect the government to notify the revised DA around March or April 2026, with arrears paid retrospectively from January.

Why this DA hike matters more than usual

This revision is especially significant because January 1, 2026 also marks the formal start of the 8th Central Pay Commission cycle. Historically, when a new pay commission is implemented, the prevailing DA is merged into basic pay and the DA clock is reset to zero under the new structure.

In that sense, the expected 60% DA under the 7th CPC becomes a crucial reference point. It effectively acts as an inflation buffer, influencing discussions around the fitment factor and overall salary restructuring under the 8th CPC.

What employees can expect

If approved as expected, the 2% DA hike will translate into a modest but meaningful increase in monthly take-home salary for serving employees and higher pension payouts for retirees, at a time when retail inflation pressures continue to persist.

Barring an unexpected collapse in December inflation data, the numbers now clearly indicate that 60% DA from January 2026 is a done deal, making this one of the most closely watched DA revisions in recent years.

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Asian stocks today: Markets trade in green after US SC’s blow to Trump’s tariffs; HSI jumps over 2% – The Times of India

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Asian stocks today: Markets trade in green after US SC’s blow to Trump’s tariffs; HSI jumps over 2% – The Times of India


Asian markets inched higher on Monday after the US Supreme Court invalidated a major part of President Donald Trump’s tariff framework, a policy that had shaken the global economy since last year. Hong Kong’s HSI climbed more than 2% or 579 points reaching 26,992 with ecommerce heavyweights Alibaba and JD.com each jumping over three percent. Seoul also scaled a fresh record high to 5,816, buoyed by strong gains in chipmakers Samsung Electronics and SK hynix.Markets in Singapore, Wellington, Taipei and Manila also ended in positive territory, while Sydney slipped. Meanwhile, trading in Tokyo and Shanghai was shut due to holidays.The gains across the region were driven primarily by technology stocks. These companies have powered much of Asia’s market strength this year as investors increasingly shift funds away from Wall Street in search of relatively cheaper valuations. Trump’s trade strategy suffered a significant legal setback on Friday when the nation’s highest court ruled that the International Emergency Economic Powers Act, which the White House relied on in April to introduce broad tariffs, “does not authorise the president to impose tariffs”. In response, the president pledged to introduce a fresh global tariff of 10% using another legal route, which by Saturday, he had increased to 15%. The latest developments have injected a new layer of uncertainty into the trade outlook. There are now also demands for authorities to return funds collected under the earlier tariff scheme, while analysts caution that the administration could still look for alternative mechanisms to enforce duties.The court’s decision has also affected the outlook for trade agreements negotiated by Washington. Even so, investors in Asia largely welcomed the ruling, which is widely viewed as supportive for China and India. Technology counters emerged as the biggest winners.In currency markets, the dollar came under pressure, falling sharply against the yen, pound and euro. Meanwhile, oil prices declined by more than one percent on optimism surrounding a potential Iran nuclear deal.



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Zudio, Trends: Budget fast fashion is taking small-town India by storm

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Zudio, Trends: Budget fast fashion is taking small-town India by storm



More Indians in small towns are now shopping for affordable brands instead of unlabelled goods in the bazaars.



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AI contributes to spike in fashion sales complaints to Citizens Advice

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AI contributes to spike in fashion sales complaints to Citizens Advice



The rising use of AI by fashion retailers contributed to Citizens Advice receiving almost 18,000 complaints from customers last year – a surge of 21% on a year earlier, it has reported.

The advisory service said it was helping a consumer with a fashion purchase every seven minutes, finding that the ever-increasing use of AI “makes it easier for scammers to trick people into buying items that look nothing like the images advertised”.

According to the charity’s consumer service, 82% of complaints about clothes, shoes and accessories related to online orders (14,487), while 14% were bought in-store (2,569).

Women’s clothing caused the most headaches, making up almost half (48%) of all complaints (8,508), while men’s clothing made up 20% (3,523).

The most common five issues suffered by fashion buyers last year were faulty goods, making up 18% of all complaints, delivery failures or delays (13%), trouble returning unwanted goods (12%), breach of contract (9%) and poor customer service (6%).

Of last year’s complaints, one in 13 involved scams, including shoppers thinking they were buying items from UK-based companies, due to their advertising.

Instead, consumers had received poor quality items that were not as pictured, and, when they tried to return them, were asked to pay expensive fees to send them to an address overseas.

One consumer, Hannah, a mother in her 30s from the East Midlands who did not want her surname published, told Citizens Advice she was Christmas shopping online when she saw a jacket she liked advertised at half price.

The company selling the jacket claimed it was based in London’s Covent Garden, and Hannah bought it for £35 using a debit card.

Hannah said: “The jacket took a few weeks to come and when it did, it was a totally different material and colour, and not as premium as it was pictured. The pockets were different and it had massive plastic buttons, but the one in the photograph had nice metal ones. It even smelled cheap.”

Hannah emailed the company to complain and request a refund.

She said: “The service felt very different to any other clothing company I’d dealt with. They asked for pictures of the jacket I’d received and I thought ‘this company sent the item to me, surely they should know what it looks like’. They also emailed me on Boxing Day.

“They said I could return the jacket if I sent it to China at my own expense, it left me fuming. I looked up the cost of shipping and it was about £15. The website clearly stated it was a UK business, which was deceptive.”

Hannah reported the incident to the Citizens Advice Consumer Service, and was able to get a full refund through her bank, which covered the cost. Eventually, the company did issue a refund itself.

Jane Parsons, consumer spokeswoman at Citizens Advice, said: “Shopping should be simple and stress-free, but every year we hear from thousands of frustrated people who have a tough time trying to resolve issues with retailers and sellers.

Consumers face all kinds of problems from receiving faulty items, to waiting weeks for deliveries and poor customer service. Plus, the ever-increasing use of AI makes it easier for scammers to trick people into buying items that look nothing like the images advertised.

“It’s important consumers know what steps to take before they part with their cash or after there’s an issue. It can make all the difference in avoiding a trap or getting a refund.”

Mike Andrews, national coordinator of the National Trading Standards eCrime Team, said: “Online retail scams leave shoppers out of pocket and understandably frustrated.

“What appears to be a genuine retailer can turn out to be a fake website, a misleading advert or goods that never arrive.

“Criminals are increasingly using professional-looking sites and convincing promotions to exploit people’s confidence in well-known brands.

“We would encourage consumers to pause before buying online – check the retailer using a URL checker from a reputable website like Get Safe Online, be cautious of offers that seem too good to be true, avoid buying directly through social media adverts and always pay by card or a secure payment platform.”

UK consumer laws are difficult to enforce when sellers turn out to be based overseas.

Citizens Advice suggests the following before buying from an unfamiliar company:

– Check reviews on search engines and third party websites– Watch out for heavily discounted, ‘too good to be true’ prices and huge closing down sales– Be mindful of the targeted shopping adverts in your social media feeds – this is often how customers are drawn in– Consider whether images used to advertise an item were created by AI. This can be difficult, but look for overly airbrushed images, inconsistent textures or distortions on the face and body– Check the company’s website delivery information. Overseas stores offer shipping to the UK in a much longer timeframe than a genuine UK brand would– If you’ve been caught out by this type of scam and you paid by debit or credit card, you may be able to use a ‘chargeback scheme’ or a ‘section 75’ claim to get a refund.



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