DA/DR from Jan 2026 confirm @60% and effect on 8th CPC Fitment Factor – AICPI-IW for November, 2025 issued by Labour Bureau on 31.12.2025
Expected DA from January 2026: AICPI-IW for November 2025 Points to a 60% Milestone
The wait for the next installment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners is nearing its conclusion. With the release of the All-India CPI-IW for November 2025, the calculation for the January 2026 revision has reached a decisive stage.
The latest data from the Labour Bureau confirms a 0.5-point increase in the consumer price index, bringing the index to 148.2. This upward movement solidifies the path toward a total DA/DR of 60% starting January 1, 2026.
Understanding the November 2025 AICPI-IW Data
The Labour Bureau, Ministry of Labour & Employment, released the figures on December 31, 2025. The index for November reflects the rising cost of living across industrial centers in India.
| Month | AICPI-IW (Base 2016=100) | Monthly Change | 7th CPC DA % (Calculated) |
| July 2025 | 146.5 | +1.5 | 58.53% |
| August 2025 | 147.1 | +0.6 | 58.94% |
| September 2025 | 147.3 | +0.2 | 59.29% |
| October 2025 | 147.7 | +0.4 | 59.58% |
| November 2025 | 148.2 | +0.5 | 59.93% |
As per the current calculation, the 12-monthly average has now pushed the DA percentage to the doorstep of 60%.
Projections for January 2026 (Scenario Analysis)
With only the December 2025 index remaining, we can analyze the likely outcome for the January revision. Based on the trend, a 2% increase (from the current 58% to 60%) is almost certain.
- Scenario 1 (Index remains steady at 148.2): DA will reach 60.34%, which rounds down to 60%.
- Scenario 2 (Index rises significantly to 150.2): DA will reach 60.53%, which rounds down to 60%.
- Scenario 3 (Index drops slightly to 146.2): Even with a minor dip, the average remains high enough to sustain a 60% DA.
Note: The Government of India considers only the whole number for DA disbursement. Therefore, any figure between 60.00% and 60.99% will be officially announced as 60%.
The 8th Pay Commission Factor
The January 2026 DA revision is uniquely significant because today, January 1, 2026, marks the official commencement of the 8th Central Pay Commission (CPC).
Historically, when a new Pay Commission is implemented, the existing DA is merged with the basic pay, and the DA for the new pay scale is reset to 0%. While the 60% figure is the benchmark for the final 7th CPC adjustment, it will serve as the “inflation buffer” that helps determine the Fitment Factor for the new 8th CPC salary structure.
Central Government employees can expect a formal announcement regarding the 60% DA hike by March or April 2026, with arrears paid retrospectively from January. This 2% jump provides a necessary cushion against retail inflation as we transition into the new 8th CPC era.
The DA/DR from Jan, 2026 table is as follows:-
Expected DA/DR from Jan 2026 on issue of All-India CPI-IW for November, 2025Expected DA/DR table by Staffnews.in |
|||||||||
| Increase/ Decrease Index |
Month | Base Year 2016 =100 |
Base Year 2001 = 100 |
Total of 12 Months |
Twelve monthly Average |
% increase over 115.76 for 6th CPC DA |
% increase over 261.42 for 7th CPC DA |
6th CPC DA announced or will be announced |
7th CPC DA announced or will be announced |
| Existing DA/DR from Jul, 2025 | 257% | 58% | |||||||
| 1.5 | Jul,25 | 146.5 | 422 | 4973 | 414.42 | 258.00% | 58.53% | ||
| 0.6 | Aug,25 | 147.1 | 424 | 4986 | 415.50 | 258.93% | 58.94% | ||
| 0.2 | Sep,25 | 147.3 | 424 | 4997 | 416.42 | 259.72% | 59.29% | ||
| 0.4 | Oct,25 | 147.7 | 425 | 5006 | 417.17 | 260.37% | 59.58% | ||
| 0.5 | Nov,25 | 148.2 | 427 | 5017 | 418.08 | 261.16% | 59.93% | ||
| 0 | Dec,25 | 148.2 | 427 | 5030 | 419.17 | 262.10% | 60.34% | Expected | |
| Scenario.1 | Expected DA/DR from Jan, 2026 | 262% | 60% | ||||||
| 2 | Dec,25 | 150.2 | 433 | 5036 | 419.67 | 262.53% | 60.53% | Expected | |
| Scenario.2 | Expected DA/DR from Jan, 2026 | 262% | 60% | ||||||
| -2 | Dec,25 | 146.2 | 421 | 5024 | 418.67 | 261.67% | 60.15% | Expected | |
| Scenario.3 | Expected DA/DR from Jan, 2026 | 261% | 60% | ||||||
Press release dated 31.12.2025 by Labour Bureau:-
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU
Shram Bureau Bhawan, Block No. 2,
Institutional Area, Sector 38 (West),
Chandigarh – 160036
F.No. 5/1/2021-CPI
Dated: 31.12.2025
Press Release
Consumer Price Index for Industrial Workers (2016=100) – November, 2025
1. Labour Bureau, an attached office of the M/o Labour & Employment, has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country. The index for the month of November, 2025 is being released in this press release.
2. The All-India CPI-IW for November, 2025 increased by 0.5 point and stood at 148.2 (one hundred forty-eight point two).
3. Year-on-year inflation for the month of November, 2025 stood at 2.56% as compared to 3.88% in November, 2024.
Press Release PDF
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