DA Hike: Good news for central employees, dearness allowance may increase by 3%; how much will the salary increase?

There's good news for central government employees and pensioners. Central government employees have been waiting for an increase in their dearness allowance (DA) and dearness allowance (DA) for the past few months. This year, the dearness allowance (DA) for central government employees is expected to increase by 3%. If the government approves the 3% increase, the dearness allowance (DA) will increase from 60% to 63%. This increase will be effective from July 1, 2026. However, the government has not made an official announcement regarding this.

The dearness allowance calculation for July 2026 is based on the Consumer Price Index (CPI-IV) for industrial workers data from January to June 2026. The CPI-IV for June 2026 was 15.19. Based on these figures, the dearness allowance is approximately 63.75%. However, as per the rules, employees are expected to receive 63% dearness allowance. Central government employees and pensioners may receive a 3% increase.

The increase in dearness allowance also increases the salaries of central government employees. If an employee's basic salary is ₹50,000, they currently receive ₹30,000 in dearness allowance at the rate of 60 percent. At 63 percent, this amount will be ₹31,500. This means they will receive ₹1,500 more per month in dearness allowance. Similarly, those with a basic salary of ₹18,000 will receive an increase of ₹540 per month, and those with a basic salary of ₹1 lakh will receive an increase of ₹3,000 per month.

Importantly, the new dearness allowance is expected to be implemented on July 1, 2026. If the government announces the dearness allowance, employees may receive arrears from July until the increased dearness allowance is paid. If the increased dearness allowance is paid in October, arrears for the three months of July, August, and September will be paid. The arrears are subject to final government orders and procedures.

PC: AAJ TAK