DA Hike News: Central government employees and pensioners are currently awaiting the announcement of the hike in Dearness Allowance (DA) for July. The Cabinet has not yet approved the DA hike. Central employees and pensioners speculate that the wait for the hike might end by Dussehra.

This year, Dussehra falls on October 20. The government typically announces the DA hike—effective from July—in either September or October. Last year, the Union Cabinet approved the DA hike (effective from July) on October 1. At that time, the DA was raised by 3 percent, increasing it from 55 percent to 58 percent. Consequently, there is a possibility that the Cabinet could approve the DA hike before Dussehra. This move could benefit approximately 50 lakh serving central government employees and around 69 lakh pensioners.

Announcement of DA hike likely before Dussehra.
Manjeet Singh Patel, President of the All India NPS Employees Federation, stated, "The central government will likely announce the DA cycle for July before Dussehra. Employees can expect to receive the DA hike in their October salary."

Could the Dearness Allowance reach 65%?
Currently, the Dearness Allowance for central employees stands at 60 percent of the basic salary. The announcement for the first DA hike of the year was made on April 18 (effective from January 1, 2026), and now the hike for the July cycle is awaited. However, the extent of the DA hike this time depends on the All India Consumer Price Index (AICPI-IW) data. According to the Labour Bureau report, the All-India Consumer Price Index for Industrial Workers (AICPI-IW) rose by 1.2 points to reach 154.4 in August 2026. This inflation data is used to calculate the Dearness Allowance (DA) for central government employees.

Based on this data, the Dearness Allowance for central employees could see an increase of 3 to 4 percent, potentially raising it to the 63–64 percent range.

PC Social Media