DA hike July 2026: Will DA rise to 64% from 60%? ₹18,000, to ₹56,100 basic salary | Calculate your likely increase

The next Dearness Allowance (DA) hike in July may raise the allowance for central government employees from 60% to 64%, based on the latest Consumer Price Index for Industrial Workers (AICPI-IW) data, an Economic Times article noted. However, the numbers are still an estimate as the government has yet to announce the final rate.

Meanwhile, the Confederation of Central Government Employees and Workers has urged the Department of Expenditure to expedite the process for the July 2026 DA/DR instalment, effective from 1 July. And also said that it should be placed before the competent authority once the relevant Consumer Price Index (CPI) data and prescribed formula allow the new rate to be determined

The Confederation said the existing DA/DR rate stands at 60% from January 2026. It pointed to the movement in DA/DR from 46% in July 2023 to 50% in January 2024, 53% in July 2024, 55% in January 2025, 58% in July 2025 and 60% from January 2026, saying the increase reflected the continuing impact of rising prices.

So, what would a 4-percentage-point increase mean for employees?

DA is calculated depending on an employee’s basic pay. For example, if an employee earns a basic salary of ₹18,000, then at the current 60% rate, he receives ₹10,800 as DA. At 64%, this would rise to ₹11,520—an increase of ₹720 per month.

For a basic pay of ₹44,900, DA would increase from ₹26,940 to ₹28,736, adding ₹1,796 a month. For a basic pay of ₹ 56,100, the increase would be ₹2,244 per month.

The final amount will depend on the Centre’s official DA announcement.

Employees seek early announcement as festive season approaches

With the festive season approaching, the Confederation of Central Government Employees and Workers has urged the government to speed up the formal process for the July 1, 2026 DA instalment, citing rising household expenses and other financial commitments.

The organisation clarified that it was not seeking any advance payment or additional benefit. Instead, it wants the pending process to be completed without unnecessary delay so that the arrears and revised salary payments can be settled through the normal process.

The letter, signed by Confederation Secretary General M S Vengatesan, also sought instructions to the authorities concerned to initiate the process for declaration of the next DA/DR instalment at the earliest.