DA Hike: The salary calculations for Central employees may have been disrupted by the Department of Allowance (DA). They are now facing a wait until November. Central government employees are anticipating the announcement of the Dearness Allowance (DA) increase for July 2026.
DA Hike Update
Over the past five years, the July increment has typically been disclosed between late September and October. The delay in the DA rise is likely to affect the salaries of central government employees. The Union Cabinet meeting on October 14, 2026, did not provide any information on this matter, leaving employees in the dark about the next installment.
What was the Reasons for the delay?
The delay in announcing the DA hike for employees has exceeded 15 days into October. This delay is expected to impact the October salaries of central government employees, as any increase in DA will not be included in the October salary. This is due to salary calculations in various central government departments being done from the 15th to the 15th. Hence, the increased DA will not reflect in the October salary.
However, there is a likelihood that the DA arrears for July, August, September, and October (4 months) will be added to the November salary of central employees and credited to their bank accounts. The announcement of the DA hike for the first half of the year, from January to June, was also delayed. Instead of the usual announcement around Holi in March, the decision was made on April 18, 2026, approving a 2% increase in DA and DR, effective January 1, 2026, raising it from 58% to 60% of the basic pay or pension.
Anticipated DA increase for July
It is expected that the government will raise the DA by 3 or 4 percent, potentially increasing the DA for central government employees to 63 or 64 percent, based on the recommended formula of the 7th Central Pay Commission.
Past announcements of July DA hikes in the last five years:
– 2025: Announced on October 1, increased from 55% to 58% (a 3 percentage point increase).
– 2024: Announced on October 16, raised from 50% to 53% (a 3 percentage point increase).
– 2023: Announced on October 18, increased from 42% to 46% (a 4 percentage point increase).
– 2022: Approved on September 28, increased from 34% to 38% (a 4 percentage point increase).
– 2021: Announced on October 21, increased from 28% to 31% (a 3 percentage point increase).
– All these revisions were effective from July 1 of the respective year.