Expected DA/DR from Jan 2026 Likely at 60%; August 2025 CPI-IW Rises to 147.1 – Key for 8th CPC Fitment Factor
New Delhi: All-India Consumer Price Index for Industrial Workers (CPI-IW) for August 2025 has risen by 0.6 points, reaching 147.1, according to data released by the Labour Bureau on September 30, 2025. This uptick has set the stage for calculating the next instalment of Dearness Allowance (DA) and Dearness Relief (DR), which government employees will get from January 2026.
Why This Matters
The upcoming January 2026 DA/DR hike is important for Central Government employees and pensioners, and it will also recommend the minimum pay recommendations of the 8th Central Pay Commission (CPC). Once the new pay scales under the 8th CPC are implemented, DA will reset to zero.
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Confirmed DA/DR Hike
- Existing DA/DR (from July 2025): 58% (approved by Cabinet)
- Expected DA/DR (from Jan 2026): ~60% (based on CPI-IW projections)
Expected DA/DR Projection (Jan 2026)
| Month (2025) | CPI-IW (2016=100) | 7th CPC DA (%) | Status |
|---|---|---|---|
| Jul 2025 | 146.5 | 58.53% | Approved |
| Aug 2025 | 147.1 | 58.94% | Issued |
| Sep 2025 | 147.1* | 59.29% | Expected |
| Oct 2025 | 147.1* | 59.55% | Expected |
| Nov 2025 | 147.1* | 59.80% | Expected |
| Dec 2025 | 147.1* | 60.12% | Expected |
| Jan 2026 | — | 60% (approx.) | Expected |
*Assuming no change in index for Sep–Dec 2025
Inflation Snapshot
- Year-on-year inflation (Aug 2025): 3.16%
- Year-on-year inflation (Aug 2024): 2.44%
With inflationary pressures reflected in CPI-IW and DA nearing the 60% mark, central government employees are expecting this figure will directly influence fitment factor calculations under the 8th CPC.
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