DA Calculator for Central Government Employees – How to calculate Dearness Allowance?

Based on CPI-IW (Base 2016 = 100) · Updated with January 2026 data

Dearness Allowance (DA) — called Dearness Relief (DR) for pensioners — is a cost-of-living adjustment paid to central government employees and pensioners to offset the impact of inflation. It is not a fixed component; it rises as prices rise.

DA is revised twice a year by the Union Cabinet — effective 1st January and 1st July. Each revision is based on a 12-month average of the All-India CPI-IW published by the Labour Bureau. The Cabinet announcement for the January revision typically comes in March, and for the July revision in September or October.

DA was reset to 0% in January 2016 when the 7th Pay Commission took effect. The 58% confirmed for July 2025 represents the full accumulation since that reset. The January 2026 revision — projected at 60% based on the complete Jan–Dec 2025 CPI-IW data — is pending Cabinet announcement.

Scroll down to see the detailed month-by-month calculation, the July 2026 working projection, and the full DA revision history since 2016.

✓ Confirmed
58%
Current DA Rate
Effective 1st July 2025. Announced by the Cabinet. Applicable to all central govt employees and pensioners.
✓ Cabinet Approved
⏳ Projected
60%
January 2026 DA
Based on Jan–Dec 2025 CPI-IW average of 145.54. All 12 months of data are now available. Pending Cabinet announcement.
⏳ Pending Cabinet
🔄 Estimate
63%
July 2026 DA
Based on Jul 2025–Jan 2026 (7 months known). Feb–Jun 2026 estimated at 148.6 each. Will be updated monthly.
🔄 Partial Estimate
1
Identify the 12-month window
For the January revision: use CPI-IW for January to December of the previous year.
For the July revision: use CPI-IW for July of the previous year to June of the current year.
2
Convert using the linking factor (×2.88)
The DA formula was built around the older CPI-IW series with base year 2001 = 100. The current series uses base year 2016 = 100. To bridge them, multiply each monthly index by 2.88.
Converted value = CPI-IW (2016 base) × 2.88
3
Calculate the 12-month average
Add up the 12 converted values and divide by 12 to get the average.
4
Apply the DA formula
Subtract 261.4, divide by 261.4, multiply by 100, and round down to the nearest whole number.
DA% = floor( (12-month average − 261.4) ÷ 261.4 × 100 )
What is 261.4? This is the average CPI-IW (2001 base) for the year 2015. When the 7th Pay Commission reset DA to 0% effective January 2016, this became the reference point from which all DA growth is measured.
Month CPI-IW (2016=100) × 2.88 (2001 equiv.)
Jan 2025143.2412.42
Feb 2025142.8411.26
Mar 2025143.0411.84
Apr 2025143.5413.28
May 2025144.0414.72
Jun 2025145.0417.60
Jul 2025146.5421.92
Aug 2025147.1423.65
Sep 2025147.3424.22
Oct 2025147.7425.38
Nov 2025148.2426.82
Dec 2025148.2426.82
12-Month Average 145.54 419.16
DA% = floor( (419.16 − 261.4) ÷ 261.4 × 100 ) = floor( 60.33 ) = 60%
CPI-IW Monthly Index — January to December 2025
All India · Base 2016 = 100 · Used for January 2026 DA revision
Estimation method: The months February to June 2026 are not yet available. They are held at the January 2026 index of 148.6 as a neutral assumption. The actual DA will differ as real data comes in. This projection is updated each month when the Labour Bureau releases new data.
Month CPI-IW (2016=100) × 2.88 (2001 equiv.)
Jul 2025146.5421.92
Aug 2025147.1423.65
Sep 2025147.3424.22
Oct 2025147.7425.38
Nov 2025148.2426.82
Dec 2025148.2426.82
Jan 2026148.6427.97
Feb 2026 EST148.6427.97
Mar 2026 EST148.6427.97
Apr 2026 EST148.6427.97
May 2026 EST148.6427.97
Jun 2026 EST148.6427.97
12-Month Average 148.08 426.39
DA% = floor( (426.39 − 261.4) ÷ 261.4 × 100 ) = floor( 63.14 ) = 63% (estimate — subject to change)
Year January July
20160%2%
20174%5%
20187%9%
201912%17%
2020 21%❄️ Frozen — not paid 24%❄️ Frozen — not paid
2021 28%✓ Paid from July 2021 31%
202234%38%
202342%46%
202450%53%
202555%58%
Data Source: All-India CPI-IW monthly indices from the Labour Bureau, Ministry of Labour & Employment, Government of India (labourbureau.gov.in). DA formula as prescribed under the 7th Central Pay Commission framework. Linking factor 2.88 per the official base-year conversion. Reference constant 261.4 is the 2015 average CPI-IW on the 2001 base. Projected and estimated figures are not official DA rates. DA becomes official only upon Cabinet approval and gazette notification. Compiled by GConnect.in for informational purposes only.

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