DA Hike July 2026: Central government employees and pensioners could soon receive another increase in Dearness Allowance (DA). Based on the latest inflation-linked figures, the Centre is expected to approve a 3 percentage point hike for the July-December 2026 period.
If approved, the revised DA would rise from the current 60% to 63% of basic pay. The increase is expected to apply retrospectively from July 1, 2026, benefiting more than 1.2 crore central government employees and pensioners.
Why Is a 3% DA Increase Expected?
The government revises DA twice a year. These revisions normally take effect from January 1 and July 1, with the calculation linked to the All-India Consumer Price Index for Industrial Workers (AICPI-IW).
For the July 2026 revision, the relevant inflation data covers the period from July 2025 to June 2026.
The Labour and Employment Ministry said on July 31, 2026, that the AICPI-IW for June 2026 rose by 1.1 points to 151.9.
With the June figure now available, the 12-month average of the index stands at approximately 149.54 based on the 2016 base year.
How Is DA Calculated Under the 7th Pay Commission?
The July 2026 DA revision will be calculated under the 7th Central Pay Commission formula.
The formula is:
DA (%) = {[(12-month average AICPI-IW × 2.88) − 261.42] ÷ 261.42} × 100
Using the latest 12-month average of 149.54, the calculated DA comes to roughly 63.7%.
Since the decimal portion is not considered for the final DA rate, the expected increase would take the DA to 63%.
That would represent a 3 percentage point increase over the current 60% rate.
When Will the July 2026 DA Hike Be Announced?
The Centre generally announces the second DA revision of the year around the Diwali period.
For instance, the previous year’s July DA revision was announced on October 1, 2025, shortly before the festival season.
Therefore, the July-December 2026 DA hike could be announced sometime in October or November 2026. Diwali will be celebrated on November 8, 2026, making the weeks around the festival a likely period for the announcement.
Although the formal decision is still awaited, the calculation process is effectively complete because the AICPI-IW data for June 2026 has already been released.
How Much Could Your Salary Increase?
A 3% increase in DA will directly raise the monthly DA component of an employee’s salary because the allowance is calculated as a percentage of basic pay.
Here is how the increase could look:
| Basic Pay | Current DA at 60% | DA at 63% | Monthly Increase |
|---|---|---|---|
| ₹18,000 | ₹10,800 | ₹11,340 | ₹540 |
| ₹30,000 | ₹18,000 | ₹18,900 | ₹900 |
| ₹50,000 | ₹30,000 | ₹31,500 | ₹1,500 |
The actual increase in take-home salary can vary depending on deductions and other components of the salary structure.
Pensioners Could Also Get Higher Dearness Relief
The expected DA revision would also benefit central government pensioners.
If the government approves a 3 percentage point increase, Dearness Relief (DR) for eligible pensioners is also expected to rise by 3 percentage points.
This would provide additional financial support to pensioners amid changing living costs.
What Was the Previous DA Increase?
In April 2026, the Union government approved a 2 percentage point increase in DA, taking it from 58% to 60% of basic pay.
That revision was made effective from January 1, 2026.
If the expected July revision is approved, central government employees could therefore see DA move to 63%, marking another increase within the same year.
Key Points at a Glance
- Current DA: 60%
- Expected July 2026 DA: 63%
- Expected increase: 3 percentage points
- Effective date: July 1, 2026
- Likely announcement: October-November 2026
- Diwali 2026: November 8
- Basis of calculation: AICPI-IW
- Current 12-month AICPI-IW average: 149.54
- Previous DA: 58% → 60% from January 2026
Note: The 63% figure is an estimate based on the available AICPI-IW data. The final DA rate will be confirmed only after the Central Government formally approves and announces the revision.