Government employees are about to receive a salary increase, as an important update has emerged regarding the DA hike. Millions of employees and pensioners are keenly watching the announcement of the dearness allowance increase, which will take effect in July 2026. After the expected 3% increase, dearness allowance could rise from 60% to 60%. However, the central government has not yet made an official announcement regarding this.

Will there be a 3% increase in dearness allowance?

Currently, central government employees receive a 60% dearness allowance. According to the Consumer Price Index for Industrial Workers (CPI-IW) data for the period January to June 2026, a 3% increase in DA is expected for July. In June 2026, this index was at 151.90 points. According to this data, the DA rate could reach 63.75%. However, the final decision on the increase will be made by the government.

Is there a possibility of an announcement by Diwali?

The Union Cabinet meeting held on October 6th did not announce a DA hike, so employees are still waiting. Based on previous year's announcements, the DA hike is expected to be announced in July, around Diwali. However, the government has not announced an official date.

How much will the salary increase after 63% DA?

After the dearness allowance increases from 60 percent to 63 percent, the monthly income of the employees will increase as per the basic salary.

Basic salary ₹18,000: DA is currently ₹10,800, and at 63%, it will become ₹11,340, which translates to an increase of ₹540 per month.

Basic salary ₹25,000: DA is currently ₹15,000, and at the new rate, it will become ₹15,750, which means an increase of ₹750 per month.

Will I get arrears also?

After the DA hike becomes effective from July 2026, even if the announcement is delayed, eligible employees may receive arrears for the previous period as per the rules. For example,

If the increase is announced in November, it is likely that the eligible arrears from July will be paid with the November salary. However, the timing and method of actual payment will depend on the government's official decision. Currently, the probability is 63 percent, and an announcement could be made before Diwali. The final decision should be made after the central government's official announcement.

PC:  Business today