DA Hike 2026: How Much Will Salaries Increase if Dearness Allowance Rises to 63%? Will Employees Have to Wait Until Diwali?
New Delhi, October 9 (Udaipur Kiran): Central government employees and pensioners are waiting for the announcement of the July 2026 Dearness Allowance (DA) hike. The Union government did not announce any increase during the Cabinet meeting held on October 6. Employees are expecting a possible 3 percentage point increase in DA and Dearness Relief (DR), which would take the rate from 60% to 63%.
However, the government has not yet confirmed either the revised rate or the announcement date. The last DA increase was 2 percentage points.
Could DA Increase by 3 Percentage Points?
Figures for the Consumer Price Index for Industrial Workers (CPI-IW) from January to June 2026 indicate the possibility of a 3 percentage point increase in DA. The CPI-IW stood at 151.90 in June 2026.
Based on these figures, the DA calculation is estimated to be around 63.75%. However, the actual increase will depend on the government’s official announcement.
Will Employees Have to Wait Until Diwali?
Some employee organisations have urged the government to announce the DA hike by Durga Puja. However, no official announcement has been made so far.
In previous years, the January DA revision was often announced around Holi, while the July revision was frequently announced around Diwali. This year, the January revision was announced in April, leading to expectations that the July revision could also be announced around Diwali.
The timing remains uncertain, as the government has not confirmed when the decision will be announced.
How Much Will Salary Increase at 63% DA?
If DA increases from 60% to 63%, employees will receive an additional amount equal to 3% of their basic pay each month.
For employees with a basic salary of ₹18,000 under the 7th Pay Commission, the calculation would be:
- Current DA at 60%: ₹10,800 per month
- DA at 63%: ₹11,340 per month
- Monthly increase: ₹540
For employees with a basic salary of ₹25,000, the calculation would be:
- Current DA at 60%: ₹15,000 per month
- DA at 63%: ₹15,750 per month
- Monthly increase: ₹750
These figures assume an increase from 60% to 63%. The actual revised DA rate will be determined by the government.
Employees May Also Receive Arrears
The increased DA is expected to be calculated retrospectively from July 1, 2026, if the government approves the revision with that effective date.
The amount of arrears will depend on the revised rate, the announcement date and the applicable payment arrangements. For example, if the announcement is made in the first week of November and the increase is effective from July 1, eligible employees could receive the arrears along with their salary payment, subject to the government’s official order.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
