Just before Durga Puja and Dussehra, a very good news is coming for lakhs of central employees and pensioners. Keeping in mind the huge expenses of the festive season, the largest organization of employees has strongly demanded from the Modi government to announce an immediate increase in Dearness Allowance (DA) and Dearness Relief (DR).
If the government approves this demand, there will be a huge jump in the basic salary of the employees and they will also get the pending arrears in lump sum from July 1, 2026. It is expected that this time DA may increase by 3 to 4 percent, after which it will increase to beyond 64 percent.
Big demand for employees in festive season, letter written to Finance Ministry
The Confederation of Central Government Employees and Workers (COCGEW) has written a very important letter to the Secretary, Department of Expenditure, Ministry of Finance. In this letter sent by the organization's general secretary MS Venkatesan on September 24, it has been clearly stated that after July, the financial burden on the employees for children's education and the upcoming festive season increases significantly.
The organization has reminded the government that this amendment in DA and DR is not an additional gift or benefit, but it becomes fully due from July 1, 2026. Therefore, to provide immediate relief to the employees who are facing the brunt of rising inflation, the government should approve the new DA in the cabinet meeting as soon as possible, so that the arrear money can reach the bank accounts of the employees before Durga Puja.
Full expectation of 3 to 4 percent increase in DA
At present, the 7th Pay Commission is in force in the country, under the rules of which DA is increased twice a year i.e. in January and July. According to the data of employee organizations, DA was 46 percent in July 2023, which has increased to 60 percent by January 2026.
The entire calculation of the new DA is being done on the basis of the average AICPI-IW index for the last 12 months i.e. July 2025 to June 2026. According to the fixed formula, based on this calculation the new DA comes to approximately 63.82 percent. That means in round figures it can be considered as 63 or 64 percent. This simply means that there is going to be a direct and big increase of 3 to 4 percent in the existing 60 percent DA.
How much will the salary of those with basic salary between Rs 50 thousand to Rs 1 lakh increase?
If the government increases DA to 63 or 64 percent, its direct impact will be visible on the take-home salary of the employees. Let us know how much benefit employees with different basic salaries will get:
- Rs 50,000 Basic Salary: The new DA will be around Rs 31,500 to 32,000 and the total salary will be around Rs 81,500 to 82,000.
- Rs 70,000 Basic Salary: The new DA will become Rs 44,100 to Rs 44,800 and the total salary will reach approximately Rs 1,14,100 to Rs 1,14,800.
- Rs 1 lakh basic salary: The new DA will be Rs 63,000 to Rs 64,000, taking the total salary to approximately Rs 1,63,000 to Rs 1,64,000.
(Note: This is an approximate calculation, in which after adding House Rent Allowance i.e. HRA and other allowances, the actual salary will be more than this.)
This entire mathematics of dearness allowance is no less than a lifesaver not only for the employed government employees but also for lakhs of retired pensioners of the country. The dearness relief (DR) given to pensioners is also decided by the same formula. If this is approved in the cabinet meeting within the coming one or two weeks, then a huge amount of arrears will be credited to the accounts of the employees before Diwali.
Frequently Asked Questions (FAQ)
Q: When will the new DA of central employees be implemented? A: Whatever new announcement will be made by the government, it will be considered effective from the previous date i.e. July 1, 2026 and its entire arrears will also be paid.
Q: How much dearness allowance are the employees getting at present? A: From January 2026, central employees are getting Dearness Allowance (DA) at the rate of 60 percent.
Q: What will be the DA after the new increase? A: According to AICPI-IW data, after the increase of 3 to 4 percent, the new DA could be between 63 to 64 percent.