DA hike for June 2026: Central government employees likely to get 63% dearness allowance after hike

Central government employees are likely to get a 3% dearness allowance (DA). This expectation gains more ground after the Labour Bureau of the Finance Ministry released the All India Consumer Price Index- Industrial Workers AICPI-IW reading for June 2026.

The June month reading for AICPI-IW was noted at 151.9, as per a tweet from the Labour Bureau. A 151.9 took the average 12-month reading to 148.65 and the DA calculation to 63.76%. Since the government calculates DA in round figures, a 63.76% DA means 63%. However, the actual DA hike will be known only when the Finance Ministry announces it.

The DA hike in January 2026 was 2%, so after a 3% hike in June, the overall DA hike for all employees in the 7^th Pay Commission is expected to be 63%. Employees will keep getting DA under the 7^th CPC till 8^th Pay Commission salary slabs are implemented.


DA is calculated on the basis of the 12-month average reading of AICPI-IW.

AICPI-IW index reading from July 2025-June 2026 and DA

Month	Index Value
Jul-25	146.5
Aug-25	147.1
Sep-25	147.3
Oct-25	147.7
Nov-25	148.2
Dec-25	148.2
Jan-26	148.6
Feb-26	148.5
Mar-26	149.1
Apr-26	149.9
May-26	150.8
Jun-26	151.9
Average	148.65
DA	63.76%= 63%

How is DA for central government employees calculated?

DA is calculated based on a formula-

DA% = [{12-month average of AICPI-IW (base year 2001)– 261.42}/261.42x100]

However, we will first have to link the 2016 base values to the 2001 base values by multiplying it by 2.88.

The factor of 2.88 is arrived at to equate the latest base year (2016) to 2001. Labour Bureau data shows that for August 2020, the value of CPI-IW under the old base (2001=100) was 33.8 and CPI-IW under the new base (2016=100) was 117.4, so the factor is calculated as 338 ÷ 117.4= 2.88.

What is the DA rate as per current AICPI-IW reading?

DA%= (148.65X2.88)– 261.42}/261.42x100]
= (428.12-261.42)/(261.42)X100
= .6376X100
= 63.76%= 63%

How a 3% DA hike can change the salary of employees?

Pay Level	Minimum Basic Pay (₹ per month)	DA amount (at 60%)	DA amount (at 63%)	Salary hike per month	Arrear of 6 months
Level 1	₹ 18,000	₹ 10,800	₹ 11,340	₹ 540	₹ 3,240
Level 2	₹ 19,900	₹ 11,940	₹ 12,537	₹ 597	₹ 3,582
Level 3	₹ 21,700	₹ 13,020	₹ 13,671	₹ 651	₹ 3,906
Level 4	₹ 25,500	₹ 15,300	₹ 16,065	₹ 765	₹ 4,590
Level 5	₹ 29,200	₹ 17,520	₹ 18,396	₹ 876	₹ 5,256
Level 6	₹ 35,400	₹ 21,240	₹ 22,302	₹ 1,062	₹ 6,372
Level 7	₹ 44,900	₹ 26,940	₹ 28,287	₹ 1,347	₹ 8,082
Level 8	₹ 47,600	₹ 28,560	₹ 29,988	₹ 1,428	₹ 8,568
Level 9	₹ 53,100	₹ 31,860	₹ 33,453	₹ 1,593	₹ 9,558
Level 10	₹ 56,100	₹ 33,660	₹ 35,343	₹ 1,683	₹ 10,098