Daijiworld Media Network – New Delhi
New Delhi, Aug 13: The Centre is expected to announce a 3 percentage point hike in Dearness Allowance (DA) for central government employees and pensioners for the July-December 2026 period, taking the DA rate from the existing 60% to 63% of basic pay.
If approved, the hike will be effective retrospectively from July 1, 2026, and is expected to benefit more than 1.2 crore central government employees and pensioners across the country.
The expected revision is based on the latest All-India Consumer Price Index for Industrial Workers (AICPI-IW), which is used to calculate DA for employees covered under the 7th Pay Commission.
The Labour and Employment Ministry said the AICPI-IW for June 2026 rose by 1.1 points to 151.9. With the latest figure, the 12-month average of the index for the July 2026 DA revision stood at around 149.54.
Under the 7th Pay Commission formula, the DA calculation based on the latest 12-month average works out to approximately 63.7%. Since the decimal portion is not taken into account for the final DA rate, the expected increase would take the allowance to 63%.
The government generally revises DA twice a year, with the changes taking effect from January 1 and July 1. Although the revised rate is applicable from the effective date, the official announcement is usually made several months later.
For the July-December 2026 cycle, the DA announcement is expected around October or November. Last year, the July 2025 revision was announced on October 1, shortly before Diwali. Diwali this year will be celebrated on November 8.
A 3 percentage point increase in DA would directly raise the monthly salary of central government employees, as the allowance is calculated on basic pay.
For an employee drawing a basic pay of Rs 18,000, a 3% increase would mean an additional Rs 540 in DA every month. For those with a basic pay of Rs 30,000 and Rs 50,000, the monthly increase would be Rs 900 and Rs 1,500 respectively.
The final DA rate, however, will be confirmed only after the Centre formally approves and announces the revision.