The All-India Consumer Price Index for Industrial Workers (CPI-IW) for August 2025 has gone up by 0.6 points and reached 147.1. This index is very important because it is used to calculate the Dearness Allowance (DA) and Dearness Relief (DR). The calculation for the DA/DR that will be paid from January 2026 has now moved into its second stage.
The final DA rate will be decided after CPI-IW data for the coming four months is released. This DA from January 2026 is also special because it will help in fixing the minimum pay in the upcoming 8th Central Pay Commission. Once the new pay scales are applied, the DA will start again from zero in January 2026.
DA/DR confirmed for July 2025
The DA/DR for July 2025 has been officially confirmed at 58%. This shows a 3% rise from the previous rate. The Union Cabinet has already approved this 3% hike from 1st July 2025. The Department of Expenditure will soon issue the official order for this increase.
CPI-IW for August 2025
For August 2025, the CPI-IW rose to 147.1. This number is important because it gives a picture of the inflation rate for industrial workers. It shows how prices are moving in the country. The year-on-year inflation in August 2025 stood at 3.16%, compared to 2.44% in August 2024.
Expected DA/DR from January 2026
Based on the CPI-IW numbers so far, the DA/DR for January 2026 is expected to rise. The table below shows the monthly index values and expected DA/DR.
| Month 2025 | Index (2016=100) | 12-Month Avg | % Increase over 7th CPC | DA/DR % (7th CPC) | Status |
| Jan 25 | 143.2 | 408.75 | 56.36% | – | |
| Feb 25 | 142.8 | 409.58 | 56.68% | – | |
| Mar 25 | 143.0 | 410.58 | 57.06% | – | |
| Apr 25 | 143.5 | 411.58 | 57.44% | – | |
| May 25 | 144.0 | 412.58 | 57.82% | – | |
| Jun 25 | 145.0 | 413.50 | 58.17% | – | |
| Jul 25 | 146.5 | 414.42 | 58.53% | 58% (Approved) | |
| Aug 25 | 147.1 | 415.50 | 58.94% | – | |
| Sep 25 | 147.1 | 416.42 | 59.29% | Expected | |
| Oct 25 | 147.1 | 417.08 | 59.55% | Expected | |
| Nov 25 | 147.1 | 417.75 | 59.80% | Expected | |
| Dec 25 | 147.1 | 418.58 | 60.12% | Expected | |
| Jan 26 | – | – | – | 261% / 60% | Expected |
The expected DA/DR from January 2026 may be around 261% (6th CPC) and 60% (7th CPC).
Labour Bureau Press Release
The Labour Bureau under the Ministry of Labour and Employment collects data every month from 317 markets across 88 important industrial centres. This is how the CPI-IW is calculated.
For August 2025, the index was declared at 147.1. This shows a steady rise in inflation compared to last year.
Conclusion
The CPI-IW for August 2025 has taken the January 2026 DA/DR calculation into its second stage. While July 2025 DA/DR has already been fixed at 58%, the expected rate for January 2026 is likely to touch 60% under the 7th CPC. This increase is not just important for employees and pensioners but will also play a major role in deciding the new pay structure under the 8th Pay Commission.
FAQs
What is the CPI-IW?
It is the Consumer Price Index for Industrial Workers.
What is the DA confirmed for July 2025?
58%.
When will the new DA rate apply?
From January 2026.
Why is January 2026 DA important?
It will help in fixing minimum pay under 8th CPC.
What happens to DA in Jan 2026?
It will reset to zero with new pay scales.