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DA hike: August CPI-IW rises to 154.4; is 65% DA likely for central govt employees? Here’s what the calculation shows | Mint
INCOME TAX
1 Oct 2026

DA hike: August CPI-IW rises to 154.4; is 65% DA likely for central govt employees? Here’s what the calculation shows | Mint

August 2026 CPI-IW, the Consumer Price Index for Industrial Workers, rose to 154.4 from 153.2 in July. That pushed the running January 2027 DA (Dearness Allowance) calculation for central government employees to 65.05 percent. This is not an announced rate. Only two of six months are counted, so four more readings will shape the final figure.

Key Statutory Highlights

  • August 2026 CPI-IW rose 1.2 points to 154.4 from 153.2 in July, with year-on-year inflation at 4.96%.
  • The running January 2027 DA calculation for central government employees now stands at 65.05%.
  • The calculation uses the 12-month average CPI-IW of 149.82 for September 2025 to August 2026, and it is not an announced DA rate.
Actionable Advice for Taxpayers / Founders:If you are a central government employee, treat 65.05% as a running calculation only and wait for the official DA announcement. Watch the CPI-IW readings for September to December 2026 before planning your budget around it.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
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