DA hike for July 2026: 64% Dearness Allowance likely after latest inflation data; when can central government employees get it?

The estimated Dearness Allowance (DA) for central government employees reached 64% (of the basic pay), as per the All-India Consumer Price Index-Industrial Workers (AICPI-IW) reading for July 2026, released by the Labour Bureau on August 31, 2026. The AICPI-IW reading for July stood at 153.2 points, according to the statement from the Labour Bureau. It is 1.3 points higher than the June reading of 151.9 points.

The July AICPI-IW reading pushed the 12-month average index to 149.21, which took the DA to 64.38%. Since the government calculates DA in round figures, a DA of 64.38% may be rounded down to 64%.

“The All-India CPI-IW for July 2026 increased by 1.3 points and stood at 153.2 points. Year-on-year inflation for July 2026 stood at 4.57% compared to 2.66% in July 2025,” says the Labour Bureau.


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The Labour Bureau compiles the AICPI-IW every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country.

When is DA revised for central government employees?

DA is revised twice a year for central government employees—in January and June. However, the announcement for the DA hike can be made months later, mostly near a festival.

As per the 12-month AICPI-IW reading, the estimated DA for June 2026 stood at 63%.

However, the actual DA rate will be known only after the government makes an announcement. It is yet to announce the June 2026 DA hike.

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

Month	Index Value
Aug-25	147.1	-
Sep-25	147.3	+0.2
Oct-25	147.7	+0.4
Nov-25	148.2	+0.5
Dec-25	148.2	0
Jan-26	148.6	+0.4
Feb-26	148.5	-0.1
Mar-26	149.1	+0.6
Apr-26	149.9	0.8
May-26	150.8	0.9
Jun-26	151.9	1.1
Jul-26	153.2	1.3
Average	149.20833
Estimated DA	64.38%= 64%

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.

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What is the DA rate as per July 2026 AICPI-IW reading?

DA%= (153.2X2.88)– 261.42}/261.42X100] = (429.72-261.42)/(261.42)X100 = .6437X100= 64.37%= 64%

How can 64% DA help increase the salary of central government employees?

The current DA rate is 60% since the government is yet to announce the June DA rate. Let’s compare the estimated monthly salary hike at 60% and 64% DA rates:

Pay Level	Minimum Basic Pay (₹ per month)	DA amount (at 60%)	DA amount (at 64%)	Salary hike per month
Level 1	₹ 18,000	₹ 10,800	₹ 11,520	₹ 720
Level 2	₹ 19,900	₹ 11,940	₹ 12,736	₹ 796
Level 3	₹ 21,700	₹ 13,020	₹ 13,888	₹ 868
Level 4	₹ 25,500	₹ 15,300	₹ 16,320	₹ 1,020
Level 5	₹ 29,200	₹ 17,520	₹ 18,688	₹ 1,168
Level 6	₹ 35,400	₹ 21,240	₹ 22,656	₹ 1,416
Level 7	₹ 44,900	₹ 26,940	₹ 28,736	₹ 1,796
Level 8	₹ 47,600	₹ 28,560	₹ 30,464	₹ 1,904
Level 9	₹ 53,100	₹ 31,860	₹ 33,984	₹ 2,124
Level 10	₹ 56,100	₹ 33,660	₹ 35,904	₹ 2,244

As you can see, high monthly salary hikes can be experienced more at high levels. However, the real hike will be known after the government announcement of DA.