The Labor Bureau released the ‘All India Consumer Price Index – Industrial Workers’ (AICPI-IW) for August 2026 on Wednesday, September 30, 2026. After this, Estimated Dearness Allowance (DA) for Central Government employees has increased to 65% of basic pay. According to a tweet from the Labor Bureau today (Wednesday, September 30, 2026), the AICPI-IW rose to 154.4 in August from 153.2 in July. This is an increase of 1.2 points. The Director General of Labor Bureau said in a tweet that the All India Consumer Price Index (2016=100) of industrial workers for August 2026 has increased to 154.4 points from 153.2 points in July 2026. The inflation rate this month increased to 4.6% from 4.57% last month.

The All India Consumer Price Index (2016=100) for Industrial Workers for August 2026 increased to 154.4 points from 153.2 points in July 2026. The inflation rate this month rose to 4.96% from 4.57% last month. August’s AICPI-IW touched a 12-month index average of 149.82, taking the estimated DA rate to 65.05% based on the government formula. Since the government calculates DA in round figures, the 65.05 percent DA can be reduced to 65 percent. The Labor Bureau releases AICPI-IW data every month. The inflation index is calculated on the basis of retail prices collected from 317 markets of 88 industrially important centers of the country.

DA changes twice a year

Dearness Allowance (DA) for central government employees is revised twice a year – based on AICPI-IW data for December and June. However, the DA increase is not announced on any fixed date. The Finance Ministry usually announces this during the festive season. The government has not yet announced the increase in DA for June 2026. However, according to the inflation index, it is estimated to be 63 percent.

AICPI-IW Index for September 2025-August 2026

How is DA calculated?

DA is calculated based on the formula-

DA %= [{AICPI-IW का 12 महीने का औसत (बेस ईयर 2001) 261.42} / 261.42 x 100]

However, we first need to multiply the 2016 base value by the 2001 base value by 2.88.

A factor of 2.88 has been used to equate the latest base year (2016) to 2001.

Labor Bureau data shows that for August 2020, the CPI-IW value under the old base (2001=100) was 33.8 and the CPI-IW value under the new base (2016=100) was 117.4, so the factor is calculated as: 338.4.127 = 127.

What is DA rate as per AICPI-IW reading of August 2026?

DA% = [{149.82 x 2.88} 261.42] / 261.42 x 100 = (431.48 – 261.42) / 261.42 x 100 = 0.6505 x 100 = 65.05% = 65%

How much can the salary of employees increase?

Currently the DA rate is 60% as the government has not yet announced the DA rate for June. Let’s compare the estimated monthly salary increases at 60% and 65% DA rates:

As you can see, the monthly salary can increase more at higher levels. However, these are estimates. After the announcement, central government employees will get DA arrears based on AICPI-IW data for June.