DA hike 2026: DA may reach 64%; check how much your monthly pay could rise
1/8
DA may rise to 64%: What central government employees need to know
The July 2026 AICPI-IW data points to a 64% Dearness Allowance (DA) rate for central government employees. The Labour Bureau reported that the index rose 1.3 points to 153.2 in July. Based on the 12-month average, the estimated DA works out to 64.38%, which is rounded down to 64%. However, the final rate will be confirmed only after the government’s announcement.
2/8
July AICPI-IW data pushes estimated DA to 64%
The All-India CPI-IW rose from 151.9 in June to 153.2 in July 2026. The Labour Bureau said year-on-year inflation stood at 4.57% in July, compared with 2.66% a year earlier. The latest reading pushed the 12-month average index to 149.21, resulting in an estimated DA of 64.38%. Since DA is expressed in whole percentages, this translates to 64%.
3/8
When will central government employees get the DA hike?
DA for central government employees is revised twice a year—in January and June. However, the government’s announcement can come several months after the revision date, often around a major festival. The estimated DA based on the June 2026 AICPI-IW data was 63%. The government has not yet announced the June 2026 DA rate, so the 64% figure remains an estimate.
Amazon Top Deals
POWERED BY
Crompton Ozone 75 Litres Desert Air Cooler for home | Large & Easy Clean Ice Chamber | 4-Way Air Deflection | High Density Honeycomb Pads | Everlast Pump | Auto Fill| 3 Year Brand Warranty
₹9,798Buy Now43%
OFF
LG 32 L Convection Microwave Oven (MC3286BRUM, Black, 360° Motorised Rotisserie for Bar-be-queing, 301 Auto Cook Menu, Stainless steel cavity, Indian Cuisine, Tandoor Se, Steam Clean & Diet Fry)
₹19,090Buy Now20%
OFF
4/8
How is DA calculated from AICPI-IW data?
DA is linked to the 12-month average of the AICPI-IW. The calculation uses the index on the 2001 base and a prescribed formula. Since current CPI-IW data uses the 2016 base, it first needs to be linked to the older 2001 base using a factor of 2.88. The July reading of 153.2 therefore translates into an estimated DA of about 64.37%, or 64%.
5/8
64% DA vs 60%: How much could your monthly salary increase?
The current DA rate is 60%, as the June 2026 revision is yet to be announced. If DA rises to 64%, the increase depends on basic pay. For example, an employee at Level 1 with ₹18,000 basic pay would see DA rise from ₹10,800 to ₹11,520—a ₹720 monthly increase. At Level 7, with ₹44,900 basic pay, the increase would be ₹1,796 per month.
6/8
Higher pay levels could see a bigger DA-linked increase
The estimated 4-percentage-point DA increase would have a larger rupee impact at higher pay levels. At Level 5, the increase works out to ₹1,168 a month, while Level 6 could see ₹1,416 more. At Level 8, the estimated increase is ₹1,904, and at Level 10, it is ₹2,244 per month. These figures are based on the difference between 60% and 64% DA.
7/8
AICPI-IW: Why this inflation index matters for DA
The AICPI-IW is central to calculating DA for central government employees. The Labour Bureau compiles the index every month using retail prices collected from 317 markets across 88 industrially important centres. The index tracks price movements affecting industrial workers. Changes in its readings feed into the DA calculation, making each monthly release important for employees tracking their potential salary revision.
8/8
DA hike calculator: Check your estimated monthly increase
To estimate the impact of a move from 60% to 64% DA, calculate 4% of your basic pay. For example, ₹18,000 basic pay means an estimated ₹720 additional DA each month, while ₹56,100 basic pay means ₹2,244 more. The actual salary increase will depend on the final DA rate announced by the government and the employee’s applicable basic pay.