States Consider Dearness Allowance Hikes for Employees

Many states in India are thinking about giving their employees and retired people more money to help with the rising cost of living.

The central government already increased this money, called Dearness Allowance (DA), by 2% starting from January 2026.

Some states like Punjab, Himachal Pradesh, West Bengal, and Kerala are also planning to increase DA.

This extra money is to help people deal with higher prices for things like food.

The government looks at something called the All-India Consumer Price Index (AICPI) to decide how much to increase DA.

Some people are hoping for another increase later this year because prices are still going up.