AICPIN June 2026 Released: 3% DA Hike Expected from July 2026

The Labour Bureau under the Ministry of Labour and Employment has released the official figures for the All-India Consumer Price Index for Industrial Workers (CPI-IW) for June 2026. According to the latest data, the retail inflation index measured for industrial workers rose by 1.1 points, reaching 151.9 points in June 2026 compared to 150.8 points recorded in May 2026.

👉 👉 DA from July 2026 Calculator

Along with the uptick in the index score, month-on-month retail inflation based on CPI-IW experienced a modest increase, ticking up to 4.76% in June 2026 from 4.72% in May.

Press Release

GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

Shram Bureau Bhawan, Block No. 2,
Institutional Area, Sector 38 (West),
Chandigarh – 160036

F.No. 5/1/2021-CPI Dated: 31.07.2026

Press Release

Consumer Price Index for Industrial Workers (2016=100) – June, 2026

Labour Bureau, an attached office of the M/o Labour & Employment, has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country. The index for the month of June, 2026 is being released in this press release.

2. The All-India CPI-IW for June, 2026 increased by 1.1 points and stood at 151.9 points (one hundred fifty-one point nine).

3. Year-on-year inflation for the month of June, 2026 stood at 4.76% as compared to 2.55% in June, 2025.

Key Highlights at a Glance

MetricMay 2026June 2026Change
CPI-IW Index Score (Base 2016=100)150.8 points151.9 points+1.1 points
Year-on-Year / Monthly Inflation Rate4.72%4.76%+0.04%

Why CPI-IW Matters for Millions of Employees

The CPI-IW (with base year 2016=100) is one of the most vital macroeconomic indicators released by the Labour Bureau. It specifically measures variations over time in the retail prices of a fixed basket of goods and services consumed by industrial worker households across major industrial centers in India.

Direct Impact Areas:

  1. Dearness Allowance (DA) Revisions: The CPI-IW index figures are used as the direct benchmark to compute Dearness Allowance revisions for millions of central government employees, public sector undertaking (PSU) staff, and industrial workers in organized sectors.
  2. Minimum Wage Fixation: State governments and central authorities rely on CPI-IW trends to periodically adjust minimum wage thresholds against inflation.
  3. Purchasing Power Assessment: An upward movement in the index highlights shifting household expenses in essential categories such as food, fuel, housing, clothing, and healthcare.

Expected 63% DA Total from July 2026

Following the release of the June 2026 CPI-IW figure of 151.9 points, the overall Dearness Allowance for Central Government employees will reach 63% of Basic Pay starting July 1, 2026.

Since Central Government employees are currently drawing DA at the rate of 60% (effective from January 1, 2026), the latest 12-month CPI-IW trajectory justifies an additional 3% hike. When combined with the existing 60% baseline, this expected 3-percentage-point increment elevates the effective allowance rate to 63%. If approved by the Union Cabinet, this revision will benefit over 55 lakh serving central employees and nearly 69 lakh pensioners (via Dearness Relief) ahead of the ongoing 8th Central Pay Commission consultations.

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