New Delhi. A big update is coming out regarding Dearness Allowance (DA) for central employees and pensioners. An increase of about 3 percent is being estimated in the DA revision of July 2026. If this increase happens, then the DA of the employees may increase from the current 60% to 63%.
When will the DA increase be announced?
The central government usually announces the July DA around the festive season. This time too, there is a possibility of getting approval from the cabinet in the last week of October or early November. Even if the announcement is made later, the increased DA will be considered effective from July 1, 2026. In such a situation, employees and pensioners will be expected to get the outstanding arrears from July till the announcement.
DA is decided by AICPI-IW
For changes in DA, AICPI-IW index data is used as the basis. This index reflects changes in the prices of commodities essential for industrial workers. On this basis, revision in dearness allowance is calculated.
Keep an eye on 8th Pay Commission also
Employees are also keeping an eye on the process of 8th Pay Commission. The Commission is taking suggestions from employees, pensioners and other stakeholders in various states. Meetings are also proposed at many places in September and October. At present, the final decision regarding 3% increase in July DA will be clear only after the cabinet approval of the Central Government.