DA Hike: The central government adjusts its employees’ dearness allowance (DA) on two occasions each year. One adjustment is typically announced near Holi, while the other comes around Diwali. Nearly a month has passed since the Labor Bureau released the All India Consumer Price Index (AICPI) figures for June 2026, which serve as the basis for determining DA rates. A 3% boost in DA is anticipated this year, which would raise the DA for central employees to 63% of their base salary.

MS Venkatesan, secretary general of the Confederation of Central Government Employees and Workers (CCGEW), submitted a letter to the finance ministry last week urging the government to begin the DA announcement process. Manjeet Singh Patel, president of the All India New Pension Scheme Employees Federation, indicated that the DA announcement should arrive within a week.

What was the previous increase?

According to a representative from the All India Defence Employees Federation, an announcement is anticipated this week since the file is currently being processed. A senior CCGEW official also mentioned that the DA increase might be declared in the first week of October. The Union Cabinet had previously greenlit a 2% DA increase on April 18th, raising the DA for central employees from 58% to 60%.

The government typically reveals DA around major festivals like Dussehra. That said, this isn’t a strict guideline, as the last two announcements occurred after Dussehra. Last year, Dussehra fell on October 2nd, and the DA was revealed on October 6th. In 2024, Dussehra was on October 12th, and the DA was revealed on October 21st. This year, Dussehra falls on October 20th.

By how much will DA go up?

The exact amount will become clear once the government makes its announcement, but DA is determined using the 12-month average reading of the AICPI, which the Labor Bureau publishes at month’s end. The upcoming DA increase will reflect the average reading spanning July 2025 through June 2026. The 12-month average reading for this timeframe stands at 148.65. As a result, DA could rise by 3%.