The next Dearness Allowance (DA) revision for central government employees and Dearness Relief (DR) for pensioners has become a key point of interest after the latest inflation data was released. The July 2026 All-India Consumer Price Index for Industrial Workers (AICPI-IW) reading has pushed the indicative DA calculation towards 64%.
The Labour Bureau reported that the CPI-IW increased from 151.9 in June 2026 to 153.2 in July. Based on the relevant 12-month average, the indicative DA calculation is around 64.38%, which points to a 64% rate when expressed as a whole percentage.
However, 64% is still an estimate and not an officially approved DA rate. The final revision will be known only after the Central Government issues its formal decision.
DA Could Increase From 60% to 64%
At present, central government employees receive DA at 60% of basic pay. The Union Cabinet approved a 2 percentage point increase in April 2026, taking DA from 58% to 60% with effect from January 1, 2026. Dearness Relief for pensioners was also increased to 60%.
For the July 2026 revision, the latest AICPI-IW figures indicate a possible four percentage point increase. If approved at 64%, employees would receive an additional DA equivalent to 4% of their basic pay.
The July revision remains under the existing 7th Pay Commission framework. It is separate from the broader review being undertaken through the 8th Pay Commission.
How Is the July 2026 DA Calculated?
DA revisions are linked to the AICPI-IW inflation index. For the July cycle, the calculation uses the 12-month AICPI-IW average from August 2025 through July 2026.
The relevant index readings include:
| Month | AICPI-IW |
|---|---|
| July 2025 | 146.5 |
| August 2025 | 147.1 |
| September 2025 | 147.3 |
| October 2025 | 147.7 |
| November 2025 | 148.2 |
| December 2025 | 148.2 |
| January 2026 | 148.6 |
| February 2026 | 148.5 |
| March 2026 | 149.1 |
| April 2026 | 149.9 |
| May 2026 | 150.8 |
| June 2026 | 151.9 |
| July 2026 | 153.2 |
The June 2026 reading of 151.9 had earlier resulted in an indicative DA estimate of about 63%. The July reading of 153.2 subsequently lifted the relevant 12-month average to around 149.21, producing an estimated DA of about 64.38%.
The exact rate, however, will depend on the government’s formal calculation and approval.
How Much Could Salary Increase at 64% DA?
If the government approves a four percentage point increase from 60% to 64%, the additional DA would amount to 4% of basic pay.
| Basic Pay | DA at 60% | DA at 64% | Monthly Increase |
|---|---|---|---|
| ₹18,000 | ₹10,800 | ₹11,520 | ₹720 |
| ₹30,000 | ₹18,000 | ₹19,200 | ₹1,200 |
| ₹50,000 | ₹30,000 | ₹32,000 | ₹2,000 |
| ₹1,00,000 | ₹60,000 | ₹64,000 | ₹4,000 |
These calculations show only the increase in the DA component. The actual change in take-home salary can differ because of other allowances, deductions and salary components.
What Will Be the Impact on Pensioners?
Pensioners would also receive the corresponding increase in Dearness Relief if the government approves the revision.
DR currently stands at 60% of the applicable basic pension. A four percentage point increase would take it to 64%. The actual increase in pension would depend on the individual’s basic pension.
If the July revision is approved with effect from July 1, 2026, eligible employees and pensioners would also be entitled to arrears for the period between the effective date and the date on which the revised amount is actually paid.
The exact announcement date has not been confirmed. An employee federation has been reported as expecting the announcement before Dussehra, but that is an expectation rather than a government-confirmed deadline.
What Happened in January 2026 and What About the 8th Pay Commission?
In April 2026, the Union Cabinet approved a 2 percentage point increase in DA and DR with effect from January 1, 2026. The move raised both rates from 58% to 60%.
The government estimated that the decision would benefit around 50.46 lakh central government employees and 68.27 lakh pensioners, with an annual financial impact of ₹6,791.24 crore.
The expected July 2026 revision remains part of the existing 7th Pay Commission structure. The 8th Pay Commission is a separate process covering the broader review of pay, pensions and allowances.
For now, the latest AICPI-IW data has moved the indicative July DA calculation from the earlier 63% estimate towards 64%. The final percentage will be known only after the Central Government formally approves and announces the revision.
Disclaimer
This article is based on publicly available AICPI-IW data and government information available at the time of writing. The 64% DA figure is an indicative calculation and should not be treated as a final government announcement. The actual DA/DR rate, effective date, arrears and related benefits will depend on the Central Government’s formal decision.