The expected July 2026 Dearness Allowance (DA) revision could take the rate for central government employees from the existing 60% to 64%, based on the latest Consumer Price Index for Industrial Workers (AICPI-IW) data. However, the 64% figure is still an estimate and will become official only after the government announces and notifies the final rate.
The Confederation of Central Government Employees and Workers has meanwhile urged the Department of Expenditure to speed up the formal process for the July 2026 DA and Dearness Relief (DR) instalment. The revision is applicable from July 1, 2026, subject to the government’s approval and notification.
Why DA Could Rise to 64%
The latest AICPI-IW data has pushed the estimated DA rate to around 64%. The Labour Bureau reported that the July 2026 CPI-IW index rose to 153.2 from 151.9 in June. Based on the 12-month average and the prescribed calculation method, the estimated DA works out to about 64.38%, which is generally expressed as 64% under the whole-percentage calculation.
The current DA rate is 60%. The Union Cabinet approved a 2 percentage-point increase in April 2026, taking DA from 58% to 60% with effect from January 1, 2026. The same revision also increased Dearness Relief for pensioners.
The DA rate has increased over successive revisions, moving from 46% in July 2023 to 50% in January 2024, 53% in July 2024, 55% in January 2025, 58% in July 2025 and 60% from January 2026.
How Much Could Salary Increase at 64% DA?
The actual increase in DA depends on an employee’s basic pay. If the estimated rate moves from 60% to 64%, the additional amount would be calculated on the basic salary.
For example, on a basic pay of ₹18,000, DA at 60% is ₹10,800. At 64%, it would become ₹11,520, resulting in an estimated increase of ₹720 per month.
For an employee with a basic pay of ₹44,900, DA would increase from ₹26,940 at 60% to ₹28,736 at 64%. This would mean an additional ₹1,796 per month.
Similarly, for a basic pay of ₹56,100, DA would rise from ₹33,660 to ₹35,904, an increase of ₹2,244 per month if the 64% rate is approved.
These calculations represent the difference between the existing 60% rate and the estimated 64% rate. The final amount will depend on the rate officially approved by the government.
Employees Seek Early DA Announcement
With the festive season approaching, the Confederation of Central Government Employees and Workers has asked the government to complete the formal process for the July 1, 2026 DA instalment at the earliest. The organisation cited rising household expenses and other financial commitments while making its request.
The Confederation has clarified that it is not seeking an advance payment or any additional benefit. Its request is for the pending formalities to be completed so that eligible employees can receive the revised salary and applicable arrears through the normal process.
A letter signed by Confederation Secretary General M. S. Vengatesan also sought instructions to the concerned authorities to initiate the process for announcing the next DA/DR instalment.
64% DA Still Awaits Official Approval
Although the latest AICPI-IW data points towards an estimated DA rate of 64%, the figure should not be treated as the final government-approved rate. The official percentage will be confirmed only after the competent authority takes a decision and the relevant notification is issued.
Central government employees and pensioners will therefore have to wait for the formal announcement regarding the July 2026 DA and DR instalment.
Disclaimer: This article is based on publicly available CPI-IW data, reported calculations and statements from employee organisations. The 64% DA figure is an estimate and should not be considered an official government announcement. The final rate, arrears and payment details will be determined only through the government’s formal approval and notification.