Expected DA from January 2027 is about 67%, if CPI-IW for September–December 2026 stays near the August level of 154.4. Calculated, not announced
Current official DA/DR: 60% of basic pay/pension from 1 January 2026, DoE OM No. 1/1(i)/2026-E.II(B) dated 22.04.2026. Official
July 2026 instalment: pending Cabinet approval as of 23 October 2026. No newer DA order is on the DoE DA orders page. Pending
Formula: DA % = (12-month average CPI-IW × 2.88 − 261.42) ÷ 261.42 × 100, decimals dropped. Data to August 2026 (Labour Bureau, released 30.09.2026) · Updated 23 October 2026
Last updated: 23 October 2026. We update this page after every monthly Labour Bureau CPI-IW release.
Expected DA January 2027 at a glance
| Item | Figure | Status |
|---|---|---|
| DA/DR now | 60% from 1 January 2026 (OM dated 22.04.2026; Cabinet, PIB 18.04.2026) | Official |
| DA/DR from 1 July 2026 | Not announced. Formula gives 63.76% → 63% | Calculated, not announced |
| DA/DR from 1 January 2027 | About 67% (66–68% range in our scenarios) | Calculated, not announced |
| Months of data in | 8 of 12 (January–August 2026) | Official |
| Latest CPI-IW | 154.4 for August 2026, up 1.2 points; inflation 4.96% (Labour Bureau, 30.09.2026) | Official |
| Next release | September 2026 index, end of October 2026 (Labour Bureau release calendar 2026) | Official |
| Last index needed | December 2026, due end of January 2027 | Official |
What is the expected DA from January 2027?
About 67% of basic pay. That is 7 points above today’s official 60%, and 4 points above the 63% the formula gives for July 2026. Calculated, not announced
This assumes CPI-IW stays at 154.4 for September to December 2026. If prices fall a little, it can slip to 66%. If the index rises by 1 point or more a month, it reaches 68%.
Pensioners get the same rate as Dearness Relief (DR). Neither 63% nor 67% is an order. Only a Cabinet decision and a DoE office memorandum make a DA rate official.
How is DA calculated from CPI-IW?
DA follows the All-India Consumer Price Index for Industrial Workers (CPI-IW), released monthly by the Labour Bureau. The rate for January uses the 12 months from January to December of the year before. The rate for July uses July to June.
DA % = (12-month average CPI-IW × 2.88 − 261.42) ÷ 261.42 × 100, with decimals dropped.
- 2.88 is the official linking factor that converts the new CPI-IW series (base 2016 = 100) to the old series (base 2001 = 100). The Labour Bureau announced it when the new series started (PIB, 22 October 2020). Official
- 261.42 is the 2015 average CPI-IW (base 2001) on which the 7th CPC pay matrix was built. DA counts the rise above it.
- What the government publishes: Cabinet releases say each rise is “in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission” (PIB, 18.04.2026). DoE orders do not print the formula itself.
- Check: January–December 2025 averages 145.54. That gives 60.33% → 60%, exactly the official rate from 1 January 2026. So we use this method. Our calculation.
Latest CPI-IW numbers, month by month
Every figure below is from the Labour Bureau press release for that month (linked). We add each new month on release day.
| Month | CPI-IW (2016=100) | × 2.88 (2001 base) | Labour Bureau release | Used for DA from |
|---|---|---|---|---|
| December 2026 | — | — | Due end of January 2027 | Last month for 1 January 2027 Pending |
| November 2026 | — | — | Due 31 December 2026 | Counts for 1 January 2027 Pending |
| October 2026 | — | — | Due end of November 2026 | Counts for 1 January 2027 Pending |
| September 2026 | — | — | Due end of October 2026 | Counts for 1 January 2027 Pending |
| August 2026 | 154.4 | 444.67 | 30.09.2026 | Counts for 1 January 2027 |
| July 2026 | 153.2 | 441.22 | 31.08.2026 | Counts for 1 January 2027 |
| June 2026 | 151.9 | 437.47 | 31.07.2026 | Counts for 1 January 2027 |
| May 2026 | 150.8 | 434.30 | 30.06.2026 | Counts for 1 January 2027 |
| April 2026 | 149.9 | 431.71 | 29.05.2026 | Counts for 1 January 2027 |
| March 2026 | 149.1 | 429.41 | 30.04.2026 | Counts for 1 January 2027 |
| February 2026 | 148.5 | 427.68 | 30.03.2026 | Counts for 1 January 2027 |
| January 2026 | 148.6 | 427.97 | 27.02.2026 | Counts for 1 January 2027 |
| December 2025 | 148.2 | 426.82 | 30.01.2026 | Counted for 1 January 2026 and 1 July 2026 |
| November 2025 | 148.2 | 426.82 | 31.12.2025 | Counted for 1 January 2026 and 1 July 2026 |
| October 2025 | 147.7 | 425.38 | 28.11.2025 | Counted for 1 January 2026 and 1 July 2026 |
| September 2025 | 147.3 | 424.22 | 31.10.2025 | Counted for 1 January 2026 and 1 July 2026 |
| August 2025 | 147.1 | 423.65 | 30.09.2025 | Counted for 1 January 2026 and 1 July 2026 |
| July 2025 | 146.5 | 421.92 | 29.08.2025 | Counted for 1 January 2026 and 1 July 2026 |
| June 2025 | 145.0 | 417.60 | 31.07.2025 | Counted for 1 January 2026 |
| May 2025 | 144.0 | 414.72 | 30.06.2025 | Counted for 1 January 2026 |
| April 2025 | 143.5 | 413.28 | 30.05.2025 | Counted for 1 January 2026 |
| March 2025 | 143.0 | 411.84 | 30.04.2025 | Counted for 1 January 2026 |
| February 2025 | 142.8 | 411.26 | 01.04.2025 | Counted for 1 January 2026 |
| January 2025 | 143.2 | 412.42 | 13.03.2025 | Counted for 1 January 2026 |
CPI-IW has risen every month since March 2026. The 2026 average so far (January–August) is 150.80.
Worked estimate: DA from 1 January 2027
Here is the full working for our headline figure. Calculated, not announced
| Step | Working | Result |
|---|---|---|
| 1. Add the 8 known months | January–August 2026 | 1206.4 |
| 2. Assume September–December | 154.4 each (same as August) | 4 × 154.4 = 617.6 |
| 3. 12-month average | (1,206.4 + 617.6) ÷ 12 | 152.00 |
| 4. Convert to 2001 base | 152.00 × 2.88 | 437.76 |
| 5. DA % | (437.76 − 261.42) ÷ 261.42 × 100 | 67.45% |
| 6. Drop decimals | 67% |
Why do some sites say 65%? The latest 12 months on record (September 2025 to August 2026) average 149.82, which gives 65.04%. That window still includes four months of 2025. The January 2027 rate uses only January–December 2026, and 2026 prices are higher. So the final figure is likely to be above 65%.
What will the next DA be? Scenarios for September–December 2026
Four months are still to come. This table shows the DA from January 2027 under five price paths. Calculated, not announced
| If CPI-IW (Sep–Dec 2026)… | Sep / Oct / Nov / Dec | 2026 average | DA % (exact) | DA from 1.1.2027 |
|---|---|---|---|---|
| Falls 0.5 a month | 153.9 / 153.4 / 152.9 / 152.4 | 151.58 | 66.99% | 66% |
| Stays at 154.4 (August level) | 154.4 / 154.4 / 154.4 / 154.4 | 152.00 | 67.45% | 67% |
| Rises 0.5 a month | 154.9 / 155.4 / 155.9 / 156.4 | 152.42 | 67.91% | 67% |
| Rises 1.0 a month | 155.4 / 156.4 / 157.4 / 158.4 | 152.83 | 68.37% | 68% |
| Rises 1.5 a month | 155.9 / 157.4 / 158.9 / 160.4 | 153.25 | 68.83% | 68% |
What CPI-IW is needed for 66%, 67% or 68%?
Turn it around. This is the average CPI-IW that September–December 2026 must reach for each DA rate. Calculated, not announced
| DA from 1.1.2027 | Needed: average CPI-IW, Sep–Dec 2026 | Compared with August 2026 (154.4) |
|---|---|---|
| 66% | 150.44 or more | Can fall about 4 points and still get 66% |
| 67% | 153.16 or more | Can fall about 1.2 points and still get 67% |
| 68% | 155.89 or more | Needs about 1.5 points more than August, on average |
| 69% | 158.61 or more | Needs about 4.2 points more than August, on average |
So 67% is the most likely outcome on current data. 68% needs prices to keep rising at the pace of July–August 2026.
Has the July 2026 DA hike been announced?
No. As of 23 October 2026, the July 2026 DA/DR instalment is pending Cabinet approval. The latest order on the DoE Dearness Allowance page is still the one dated 22 April 2026 (60%). Pending
The Cabinet met on 14 and 21 October 2026 without a DA decision. Media now look to the next meeting, reportedly on 28 October (Mint, 23 Oct 2026). Reported
On the formula, July 2025–June 2026 averages 148.65, which gives 63.76% → 63%. Calculated, not announced Headlines that called 63% “confirmed” were wrong: no order has been issued. Track the order on our DA hike tracker, and see every live figure on the Official Status Board.
When the July order comes, the January 2027 figure does not change. Each instalment is worked out from its own 12-month window, not added on top.
When will DA from January 2027 be announced?
Not before the December 2026 CPI-IW is out, at the end of January 2027. Over the last four years, the January instalment was approved between March and April:
| DA due from | Cabinet approval | Source |
|---|---|---|
| 1 January 2023 | 24 March 2023 | PIB |
| 1 January 2024 | 7 March 2024 | PIB |
| 1 January 2025 | 28 March 2025 | PIB |
| 1 January 2026 | 18 April 2026 | PIB |
So a decision around March–April 2027 is likely, with arrears from January. Calculated, not announced This is a pattern, not a promised date.
How much will salary go up at 67% DA?
Monthly DA at entry pay of each level. 63% and 67% are our calculations, not orders. DA is rounded to the nearest rupee. Calculated, not announced
| Pay level | Basic pay | DA at 60% (now) | DA at 63% (July 2026, calc.) | DA at 67% (Jan 2027, calc.) | Rise vs today |
|---|---|---|---|---|---|
| Level 1 | ₹18,000 | ₹10,800 | ₹11,340 | ₹12,060 | +₹1,260 |
| Level 4 | ₹25,500 | ₹15,300 | ₹16,065 | ₹17,085 | +₹1,785 |
| Level 6 | ₹35,400 | ₹21,240 | ₹22,302 | ₹23,718 | +₹2,478 |
| Level 7 | ₹44,900 | ₹26,940 | ₹28,287 | ₹30,083 | +₹3,143 |
| Level 10 | ₹56,100 | ₹33,660 | ₹35,343 | ₹37,587 | +₹3,927 |
| Level 13 | ₹1,23,100 | ₹73,860 | ₹77,553 | ₹82,477 | +₹8,617 |
| Minimum pension (DR) | ₹9,000 | ₹5,400 | ₹5,670 | ₹6,030 | +₹630 |
For your own pay, use the 7th CPC salary calculator or the 7th CPC pay matrix. For arrears once an order comes, use the DA arrears calculator. Full rate history: 7th CPC DA/DR table 2016–2026.
Update log
- 23 October 2026: Page published. Data to August 2026 (CPI-IW 154.4, released 30.09.2026). July 2026 DA pending; no order. Estimate for January 2027: about 67%.
- Next update: September 2026 CPI-IW, due end of October 2026. We also update the same day if the July 2026 DA order is issued.
Expected DA January 2027: FAQs
What will be the next Dearness Allowance?
The next instalment is for 1 July 2026 and is not announced yet. The formula gives 63%. After that, DA from 1 January 2027 works out to about 67% on data to August 2026. Both are our calculations, not orders. The current official rate is 60%.
Is there a DA hike expected in January 2027?
Yes. DA is revised every January and July. On CPI-IW data for January–August 2026, DA from 1 January 2027 works out to about 67% if prices hold near the August level. The final rate depends on September–December 2026 data and a Cabinet decision.
Is the July 2026 DA hike confirmed at 63%?
No. As of 23 October 2026 there is no Cabinet approval and no DoE order for July 2026. 63% is what the CPI-IW formula gives. The official rate is still 60% under DoE OM dated 22.04.2026.
How is DA calculated from CPI-IW?
Take the 12-month average CPI-IW (base 2016), multiply by the linking factor 2.88, subtract 261.42, divide by 261.42 and multiply by 100. Drop the decimals. For January 2026 this gives 60%, the official rate.
When will the DA from January 2027 be announced?
The last index needed (December 2026) comes out at the end of January 2027. In 2023–2026 the January instalment was approved between 7 March and 18 April. So a decision around March–April 2027 is likely, with arrears from January.
Will pensioners get the same rate as DR?
Yes. Dearness Relief for central government pensioners and family pensioners is revised at the same rate and from the same date as DA. So the expected DR from January 2027 is also about 67%, subject to the official order.
Official sources
- DoE OM No. 1/1(i)/2026-E.II(B) dated 22.04.2026 (DA 60% from 1.1.2026)
- PIB, 18.04.2026: Cabinet approves DA/DR from 1.1.2026
- Department of Expenditure: all DA orders (checked 23 October 2026)
- Labour Bureau CPI-IW press release, August 2026 (30.09.2026)
- Labour Bureau: all CPI-IW press releases
- Labour Bureau: Advance Release Calendar of CPI-IW 2026
- PIB, 22.10.2020: CPI-IW base 2016 and linking factor 2.88
Figures marked “Calculated, not announced” are worked out by 8thpaycalculator.in from these sources. They are not government orders. See our editorial policy and corrections policy.
