Expected DA from January 2026 | Central Govt DA Calculator

What is DA?

Dearness Allowance (DA) is an inflation-linked allowance paid to Central Government employees and pensioners to offset the rising cost of living. It is revised twice a year based on movements in the All India Consumer Price Index (AICPIN – 2016=100).

DA serves as a critical component of the salary structure for government employees, ensuring that their purchasing power remains stable despite inflationary pressures. The allowance is calculated as a percentage of the basic pay and is revised biannually in January and July each year. The revision is based on the average AICPIN data of the preceding 12 months, ensuring that salary adjustments reflect actual cost of living changes experienced by employees.

For pensioners, Dearness Relief (DR) is paid at the same rate as DA, ensuring that retired government employees also benefit from inflation adjustments. The DA/DR mechanism has been in place since independence and has evolved significantly over the decades. Under the 7th Pay Commission, the base year for AICPIN calculation was changed to 2016=100, replacing the earlier 2001=100 base. This change ensures more accurate reflection of current consumption patterns and price movements in the calculation of dearness allowance.

Expected DA from January 2026: The expected DA from January 2026 is projected to be 61% with 100% confidence, representing a significant increase from the current rate of 58.94%. This increase will benefit millions of central government employees and pensioners across India. Use our Central Govt DA Calculator to calculate your exact DA amount. The DA for PSU from January 2026 will also be calculated based on similar CPI trends, with slight variations depending on the specific PSU's pay structure.

Expected DA Jan 2026: Based on current AICPIN trends, the expected DA in January 2026 is likely to see a 3-4% hike. This projection is based on the 12-month average CPI data from January 2025 to December 2025. Government employees eagerly await the official announcement, which typically comes in March 2026 after the Labour Bureau releases the December 2025 CPI data.

DA for PSU from Oct 2025: Public Sector Undertakings (PSUs) follow a similar DA calculation methodology, though the implementation dates may vary. The DA for PSU from October 2025 onwards is typically calculated using the same AICPIN base year (2016=100) but may have different effective dates depending on the specific PSU's pay revision cycle.

How is DA Calculated?

DA is calculated using the 12-month average of the AICPIN (Base Year 2016 = 100). The formula used is: DA% = [(Average of AICPIN for last 12 months - 115.76) / 115.76] × 100. The value 115.76 represents the average AICPIN for the period January 2016 to June 2016, which serves as the baseline for all DA calculations under the 7th Pay Commission.

The Labour Bureau, Ministry of Labour & Employment, Government of India, publishes the AICPIN data on a monthly basis, typically by the end of the following month. For example, the AICPIN for October 2025 would be released by the end of November 2025. This data is compiled based on price surveys conducted across 88 centers covering various consumption items including food, clothing, housing, fuel, and miscellaneous goods and services.

DA Calculation for January 2026: To calculate the DA from January 2026, you need to take the average of AICPIN data from January 2025 to December 2025. This 12-month average is then used in the formula mentioned above. The expected DA Jan 2026 is currently projected to be around 60%, based on available CPI data trends up to August 2025.

DA for PSU Calculation: The DA for PSU from January 2026 follows a similar calculation methodology. However, PSUs may have different effective dates and may use slightly different base years depending on their pay revision cycles. Most PSUs align their DA calculations with the central government's methodology to ensure consistency.

You can refer to the official AICPIN data published monthly by the Labour Bureau at labourbureau.gov.in. The website provides historical AICPIN data, methodology details, and monthly press releases announcing the latest index values. Understanding this calculation helps employees anticipate their DA revisions and plan their finances accordingly.

Expected DA from January 2026: 61% | Central Govt DA Calculator

Based on AICPIN data trends up to August 2025, the expected DA from January 2026 is projected to be 61%, representing a significant increase from the current rate of 58.94%. Final confirmation will follow release of December 2025 CPI. The Expected DA from January 2026 will be officially announced by the Department of Expenditure, Government of India, typically in March 2026. Our Central Govt DA Calculator provides real-time projections based on the latest AICPIN data.

The Dearness Allowance (DA) for Central Government employees is calculated based on the All India Consumer Price Index for Industrial Workers (AICPIN) with base year 2016=100. The Labour Bureau releases monthly AICPIN data, which is used to compute the 12-month average for determining DA revisions. The current DA rate as of August 2025 stands at 58.94%, and with inflation trends continuing, Central Government employees can expect a significant increase in Expected DA from January 2026 to 61%. Use our Central Govt DA Calculator to see your exact DA amount.

Expected DA Jan 2026 Projection: Based on current CPI trends, the expected DA in January 2026 is projected to reach approximately 60%. This represents a substantial increase that will positively impact the financial well-being of millions of government employees and pensioners. The DA Jan 2026 calculation will use the 12-month average from January 2025 to December 2025.

Historical patterns show that DA increases have ranged between 2-4% every six months, depending on inflation and consumer price movements. The expected DA hike in January 2026 will benefit over 48 lakh central government employees and 65 lakh pensioners across India. This increase directly impacts take-home salary, pension amounts, and various allowances linked to basic pay plus DA.

DA for PSU from January 2026: Public Sector Undertakings (PSUs) typically follow the central government's DA calculation methodology. The DA for PSU from January 2026 is expected to be similar to the central government's rate, though effective dates may vary. Employees in PSUs should check with their respective organizations for specific implementation timelines.

DA for PSU from Oct 2025: Some PSUs may have already implemented DA revisions from October 2025 onwards. The DA for PSU from Oct 2025 is calculated using the same AICPIN methodology, ensuring consistency across government and public sector organizations. Employees should verify the specific dates applicable to their organization.

Government employees should note that DA is a crucial component of salary structure as it helps offset the impact of inflation on purchasing power. The DA calculation formula is: [(Average of AICPIN for last 12 months - 115.76) / 115.76] × 100. Once the December 2025 AICPIN data is released, the exact DA percentage can be calculated using this formula. Our calculator above provides real-time projections based on the latest available data.

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