Centre Hikes DA By 3% To 63% For Central Govt Employees, Pensioners Ahead Of Diwali

The Central Government has raised the dearness allowance (DA) for its employees by three percentage points for the July 2026 revision, taking the rate from 60% to 63%.

The decision was taken at the Union Cabinet meeting on Wednesday, October 28, ahead of the Diwali festival.

Central government employees and pensioners had been awaiting the announcement of the latest DA hike, which is revised twice a year.

The revision is calculated using the 12-month average of the All-India Consumer Price Index for Industrial Workers (AICPI-IW).

The index readings required for the July 2026 revision had already been released, leading to expectations of a three-percentage-point increase in DA and dearness relief (DR) for pensioners.

The increase will raise the monthly DA component of employees’ salaries, with the additional amount determined by their basic pay.

For instance, an employee drawing a basic salary of Rs 18,000 would receive an additional Rs 540 per month following the hike. Similarly, an employee with a basic pay of Rs 29,200 would see a monthly increase of Rs 876.

The revised rate of 63% will apply to eligible central government employees under the July 2026 DA tranche.