- August 13, 2026
DA Hike July 2026: When Will Govt Announce Increase in Dearness Allowance for Central Government Employees?
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The July DA hikes are generally announced around Diwali. So, for the July-December 2026 cycle, the central government is likely to announce the DA hike in October-November.
Currently, central government employees receive DA at 60% of their basic pay. After the expected 3% hike in October-November, the DA will increase to 63%.
DA Hike July 2026: The Centre is expected to announce a 3 per cent DA hike for the July-December 2026 cycle for central government employees, according to estimates based on the latest inflation data. The increase in dearness allowance, after it is implemented, will become effective retrospectively from July 1, 2026.
The increase in dearness allowance will benefit over 1.2 crore employees and pensioners in the country. Currently, central government employees receive DA at 60% of their basic pay. After the expected 3% hike, the DA will increase to 63%.
Why is a 3% DA hike expected?
The central government revises dearness allowance twice every year — with effect from January 1 and July 1. The revision is based on the 12-month average of the AICPI-IW, which measures retail inflation faced by industrial workers. For the July 2026 revision, the calculation uses AICPI-IW data from July 2025 to June 2026.
“The All-India CPI-IW for June 2026 increased by 1.1 points and stood at 151.9 points,” the labour and employment ministry said on July 31, 2026. With this, the 12-month average of AICPI-IW stood at 149.54.
So, based on the latest index values, the 12-month average works out to around 149.54 (2016 base year). The July 2026 DA hike will be paid under the 7th Pay Commission. Under the 7th CPC, the formula is:
DA (%) = {[(12-month average AICPI-IW × 2.88) − 261.42] ÷ 261.42} × 100
When the value of the 12-month average of 149.54 (2016 base year) is applied to the 7th Pay Commission formula, the DA works out to about 63.7%. Since the government ignores the decimal portion, the DA is expected to be 63%.
When will it be announced?
The July DA hikes are generally announced around Diwali. Last year also, the announcement was made on October 1, 2025, days before the festival. So, for the July-December 2026 cycle, the central government is likely to announce the DA hike in October-November. Diwali 2026 falls on November 8.
However, since the June 2026 AICPI-IW data has been released, the calculation is effectively complete.
How much will salaries increase?
A 3 percentage point increase in DA means employees will receive higher monthly salaries as DA is calculated on basic pay.
For example:
- Basic pay of Rs 18,000: Monthly DA increases by Rs 540.
- Basic pay of Rs 30,000: Monthly DA increases by Rs 900.
- Basic pay of Rs 50,000: Monthly DA increases by Rs 1,500.
Pensioners are also expected to receive a corresponding 3% increase in dearness relief (DR).
In April 2026, the Union government had announced a 2 per cent increase in dearness allowance, taking the total DA from 58 per cent to 60 per cent of basic pay. The revised DA became effective from January 2026.
About the Author
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
August 13, 2026, 10:51 IST
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