Estimate the Dearness Allowance effective from 1 July 2026 using the real 7th CPC AICPI-IW formula — pre-loaded with the Labour Bureau's published index values through April 2026. Edit the two pending months to test your own scenario.
60%Current DA (since 1 Jan 2026)
—Projected DA from 1 Jul 2026
10 / 12Months of data already published
AICPI-IW Index Values
12-month window for the July 2026 revision: July 2025 – June 2026 (Base 2016=100). The first 10 rows are figures released by the Labour Bureau. The last two rows (May & June 2026) are not yet published — edit them to test your own assumption.
Month
Index
Status
Your Salary Details
Used only to show the rupee impact. Calculation runs entirely in your browser — nothing is sent anywhere.
What is Dearness Allowance (DA)?
Dearness Allowance is a cost-of-living adjustment paid to Central Government employees and pensioners (as Dearness Relief) to offset inflation. It is revised twice a year — effective 1 January and 1 July — based on the movement of the All-India Consumer Price Index for Industrial Workers (AICPI-IW) over the preceding 12 months. DA is calculated as a percentage of Basic Pay and is one of the largest components of take-home salary after Basic Pay itself.
Formula Used
DA% = [ (12-month average AICPI-IW × 2.88) − 261.42 ] ÷ 261.42 × 100, floored to the nearest whole percentage point
2.88 links the current 2016-base AICPI-IW series to the 2001-base series used in the original 7th CPC formula. 261.42 is the average 2001-base AICPI-IW for calendar year 2015, the reference point fixed at 7th CPC implementation. Read the complete explanation, including a worked example for the last confirmed revision, in How the Government Decides DA — Complete Guide.
Why two months are still "editable estimates"
The AICPI-IW for a given month is released by the Labour Bureau roughly four weeks after that month ends. For a 1 July revision, the calculation needs the average index from July of the previous year through June of the current year — so the June figure is published only in the last week of July, weeks after the calculator page needs to show an estimate. This tool pre-loads all published figures and lets you edit the remaining month(s) to see how the final index reading could move the projected DA up or down.
When is the DA hike officially announced?
Although the AICPI-IW data needed for the calculation is available by late July (for a July revision) or late January (for a January revision), the Union Cabinet typically approves and the Department of Expenditure notifies the actual DA order only some weeks to a couple of months later — historically in September–October for the July revision, and in March for the January revision. Employees receive the difference for the intervening months as one-time arrears along with the first revised salary.
Source references
Primary sources: Labour Bureau, Ministry of Labour & Employment (monthly AICPI-IW releases); Department of Expenditure, Ministry of Finance (DA revision orders); 7th CPC Report (DA formula and linking factor).
Frequently Asked Questions
How is DA different from HRA and other allowances?
DA is a percentage of Basic Pay revised twice yearly to offset inflation, based purely on AICPI-IW movement. HRA depends on your city classification, and other allowances (TA, CEA, etc.) follow their own separate formulas — they are not derived from the DA percentage.
Why does this calculator show a range instead of one fixed number?
Because the AICPI-IW readings for the final one or two months in the 12-month window are not yet published at the time you're checking, this tool shows a likely range based on plausible index movement, alongside a single best-estimate percentage using the values currently filled in.
Is this an official DA announcement?
No. This is an independent, formula-based projection using publicly released Labour Bureau data. The DA rate takes legal effect only after Cabinet approval and a Department of Expenditure notification.
Why is DA revised effective from January and July, but announced later?
The formula needs the full 12-month AICPI-IW average up to the revision month, which isn't available until weeks after that month ends. Cabinet approval and formal notification then take additional time, so the arrears for the gap are paid in one lump sum once the order is issued.