DA/DR news: Expected DA/DR from January 2026, Likely to touch 60% as CPI-IW for October 2025 Rises

DA/DR news: Expected DA/DR from January 2026, Likely to touch 60% as CPI-IW for October 2025 Rises

Dearness Allowance (DA) and Dearness Relief (DR) payable to Central Government employees and pensioners from January 2026 are now being estimated, following the latest Consumer Price Index numbers released by the Labour Ministry.

The All-India CPI-IW for October 2025 has climbed to 147.7, reflecting a modest increase of 0.4 points.

With only November and December index data pending, early calculations indicate that the DA may reach 60% under the 7th Pay Commission, while the 6th CPC DA may move beyond 260%.

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This upcoming pay revision is considered highly significant, as it will directly contribute to determining the fitment factor and minimum pay under the upcoming 8th Central Pay Commission.

Once the new pay structure under 8th CPC is finalized and implemented, DA will reset to zero, making the January 2026 adjustment the final DA slab under the existing pay commission.

The Labour Bureau also noted that retail inflation for industrial workers in October 2025 stood at 2.21%, much lower than 4.41% recorded during the same month last year.

Meanwhile, the Government has clarified in Parliament that there is no proposal to merge DA with basic pay as interim relief, a demand frequently raised by Central Government employee unions during pay commission transition periods.

Final DA/DR figures will be confirmed once retail price data for November and December 2025 is processed, with an official announcement expected in early 2026.