DA Hike 2026 – 4% Increase Likely, DA May Reach 64%, Here Full Calculation

7th Pay Commission: If you are a government employee or a pensioner, this news is important for you. A significant hike in the Dearness Allowance (DA) and Dearness Relief (DR) for government employees and pensioners is on the cards. The AICPI-IW data for July has been released, showing a 1.3% rise in the Labour Bureau index during the month. Based on the 12-month average, the inflation rate stands at 64.38%, implying that the DA could reach 64%. However, the government will make the final announcement.

When will the Dearness Allowance increase?

The government has not yet announced any changes to the Dearness Allowance for July. The announcement is expected around October, as the hike for the July period usually takes place between September and November.

How ​​is the Dearness Allowance calculated?

The Dearness Allowance is calculated based on the 12-month average of the AICPI-IW. While the calculation relies on the 2001 formula, the current computation uses 2016 as the base year. The DA reading for July was 153.2, indicating a potential rise to 64%.

How ​​much will employees’ salaries increase?

Currently, employees receive a DA of 60%. If the DA increases by 4%, it will reach 64%, leading to a substantial rise in employee salaries. For instance, if a Level-1 employee has a basic pay of ₹18,000, a 60% DA adds ₹10,800 to their earnings; however, at 64% DA, this amount becomes ₹11,520. This translates to a monthly salary increase of ₹720.

How much will the salaries of Level 5 employees increase?

Regarding Level 5 employees, while the basic pay for Level 7 employees is ₹44,900 (resulting in a monthly salary increase of ₹1,796), Level 6 employees will see a salary hike of ₹1,400. Similarly, Level 5 employees will see a monthly salary increase of ₹1,168.

How often is the DA increased in a year?

The government revises the Dearness Allowance (DA) for employees and the Dearness Relief (DR) for pensioners twice a year. The government has increased the DA for January under the 7th Pay Commission; however, the DA for July has not yet been raised.