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DA January 2026 Update: October 2025 CPI-IW Data Released!

DA Calculator Jan 2026: Updated with October Data

Hello fellow Central Government Employees!

We all eagerly track the Dearness Allowance (DA) revisions twice a year. The Labour Bureau has just released the latest figures, bringing us one step closer to finalizing the January 2026 DA rates.

Latest Update (28.11.2025): The Labour Bureau has officially released the All-India CPI-IW for the month of October 2025. The index increased by 0.4 points and now stands at 147.7.

With this new piece of the puzzle, we can start to build a clear picture of the upcoming Dearness Allowance hike effective January 1, 2026.

How is DA Calculated? The 7th CPC Formula

Dearness Allowance is a cost-of-living adjustment paid to employees and pensioners to offset the impact of inflation.

When the 7th Pay Commission was implemented, it set the DA to 0% as of January 1, 2016. The calculation for all future DA hikes is based on how much the "12-month average" of the CPI-IW has increased since 2015.

Here is the step-by-step process:

  1. Select the Period: The DA revision from January 1st, 2026, will be based on the 12-month average index from January 2025 to December 2025.
  2. Find the 12-Month Average (2016=100 Base): All 12 monthly CPI-IW (Base 2016=100) figures are added up and divided by 12.
  3. Apply the Linking Factor: The 7th CPC formula is based on the old 2001=100 index. To convert the new 2016=100 index, we must use the official linking factor of 2.88.
    Converted Average = (12-Month Average) × 2.88
  4. Apply the Final Formula: This "Converted Average" is then compared against the base index set by the 7th Pay Commission, which was the 12-month average for 2015, or 261.4.

The official formula is:

DA % = ((Converted Average - 261.4) / 261.4) * 100

5. Round Down: As per the rules, the final calculated percentage is always rounded down to the nearest integer. A result of 60.89% becomes 60%.

Advanced DA Calculator (Jan 2026)

This calculator uses data from Jan 2025 to Dec 2025. Actual data up to October 2025 is pre-filled. Enter your expected data for November and December.

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