DA hike 2027: Dearness Allowance may rise to 67% from January | How much more could employees get?

The January 2027 Dearness Allowance (DA) rate is pending confirmation, influenced by upcoming CPI-IW readings. 

The Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners could rise to 67% from January 2027, based on the latest Consumer Price Index for Industrial Workers (CPI-IW) data.

According to StaffNews, CPI-IW for August, 2026 increased by 1.2 points and stood at 154.4 points (one hundred fifty-four point four). This has taken the indicative DA/DR calculation for January 2027 to 65.03%. The final rate, however, will depend on CPI-IW readings for September, October, November and December.

The calculation suggests that if the CPI-IW remains at the August level for the remaining months, the indicative DA/DR rate would move higher, reaching around 66.91% by November. This points to a potential 67% DA/DR from January 2027, subject to the final CPI-IW numbers and the government's decision.