Great news for central employees! Dearness allowance can reach 63%, this big sign came out

DA Hike Latest Updates: Dearness Allowance (DA) always remains a topic of discussion for lakhs of central government employees and pensioners. Now, after the latest data of AICPI-IW (All India Consumer Price Index for Industrial Workers) for April 2026 has come out, the expectation has increased that the government may increase it by up to 3% in the next DA revision to be implemented from July 2026. Although the final decision will depend on the inflation data for May and June 2026, the currently available data is giving positive signals for the employees.

According to the data released by the Labor Bureau, the AICPI-IW index increased to 149.9 points in April 2026, while it was 149.1 points in March 2026. Along with this, the inflation rate of industrial workers also increased from 4.27% to 4.46%. This reflects the continuously increasing inflation, which has a direct impact on the calculation of dearness allowance.

How is dearness allowance of employees decided?

In fact, central employees The DA is decided on the basis of 12 months average AICPI-IW data. For the DA revision of July 2026, the average of the index for 12 months from July 2025 to June 2026 will be taken. Currently, the average of the 12 months of data available from May 2025 to April 2026 comes out to be 147.51. Based on this average, it is estimated that the DA level may reach 62.51%, which can generally be considered as 63% by rounding off to the next integer.

Dearness allowance was increased by 2% in January 2026

It is noteworthy that in April 2026, the Central Government had announced a 2% DA increase with effect from January 2026, after which dearness allowance had reached 60%. If there is another increase of 3% in the upcoming revision, the DA will increase to 63%. This will lead to a direct increase in the monthly income of the employees.

How much will the salaries of employees increase?

For example, if the minimum basic salary of a level-5 employee is Rs 29,200, then at 60% DA he gets dearness allowance of Rs 17,520. If DA increases to 63%, it will increase to Rs 18,396, meaning the employee can get approximately Rs 876 extra every month. On an annual basis this increase works out to more than Rs 10,000.

When will employees get the benefit of 63%?

However, employees will have to wait a little longer, as the AICPI-IW data for May and June 2026 is yet to come. If there is no major decline in inflation rate in the next two months, then the possibility of 3% DA increase is considered strong. The final decision will be clear only after the official announcement by the Central Government.

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At present, the latest inflation figures have definitely increased the expectations of central employees and pensioners. The coming two months will decide whether the employees will get a 2% increase in July 2026 or a big gift of 3% DA increase.