More than one crore central government employees and pensioners are likely to receive a 3% increase in Dearness Allowance (DA) from July 2026, following the release of the June Consumer Price Index for Industrial Workers (CPI-IW) by the Labour Bureau.
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Central Government Employees Likely to Get 3% DA Hike
The June CPI-IW figures complete the inflation data required to calculate the DA revision under the 7th Central Pay Commission. Based on the prescribed formula, the revised DA is estimated at 63.75%, which is expected to be rounded down to 63% for payment purposes.
3% DA Hike from July 2026 After CPI-IW Data
If approved by the Union Cabinet, the new DA rate would represent a 3 percentage point increase over the existing allowance. The revised rate will benefit more than one crore serving central government employees and pensioners by helping offset the impact of inflation on their income.
Although the calculation has been completed using the latest CPI-IW data, the revised DA will come into effect only after the Centre issues an official notification following Cabinet approval.
The Dearness Allowance is revised twice every year—effective from January 1 and July 1—based on inflation trends reflected in the CPI-IW. Employees and pensioners are now awaiting the government’s formal announcement on the July 2026 revision.
