Central government employees are waiting for the announcement of the next dearness allowance (DA) revision, which is due from July. Based on the latest Consumer Price Index for Industrial Workers (AICPI-IW) data, the DA could potentially increase by 4%.
If the expected hike is approved, the dearness allowance could rise from the existing 60% to 64% of basic pay. However, the central government has not yet issued any official confirmation regarding the July DA revision.
The Confederation of Central Government Employees and Workers has urged the government to announce the DA and Dearness Relief (DR) rates at the earliest. It has also requested that the revised rates be applicable from July 1.
According to the Confederation, the DA rate has increased from 46% in July 2023, with the current rate standing at 60%. The expected revision could take the rate to 64%.
How Much Will Salary Increase With a 4% DA Hike?
The impact of the proposed increase will depend on an employee’s basic pay. For example, an employee with a basic salary of Rs 18,000 currently receives 60% DA, amounting to Rs 10,800. If DA rises to 64%, the amount would increase to Rs 11,520, resulting in an additional Rs 720 per month.
For an employee with a basic pay of Rs 44,900, the current 60% DA is Rs 26,940. At 64%, the DA would become Rs 28,736, giving a monthly increase of Rs 1,796.
Similarly, an employee with a basic salary of Rs 56,100 would receive an additional Rs 2,244 per month if the DA rate increases by 4%.
2% DA Hike in January 2026
The government revises dearness allowance for central government employees twice a year—once in January and again in July.
For the first revision of 2026, the government increased the DA by 2%. The allowance rose from 58% to 60%, with the revised rate applicable from January 1.
The next revision is due for the July-December period. If the expected 4% increase is approved, the DA could reach 64%, effective from July 1.
DA Hike Could Be 3% to 4%
The DA revision is linked to the All India Consumer Price Index for Industrial Workers (AICPI-IW). The first annual revision covers the January-June period, while the second applies to the July-December period.
Although there has been no official announcement from the central government regarding the July DA hike, current AICPI-IW data and reports indicate that the increase could be in the range of 3% to 4%. The final DA rate will be known only after the government makes an official announcement.
Disclaimer
This article is based on the information and estimates available at the time of writing. The expected DA increase mentioned above has not been officially confirmed by the central government. Employees should refer to official government announcements for the final DA rate, effective date and applicable benefits.