Central staff union urges quick decision on DA hike from July 2026

Central government employees and pensioners are awaiting good news on their dearness allowance. Amid rising prices, various government employee unions have demanded that the central government quickly decide the revised dearness allowance rates effective from July 2026.

The Confederation of Central Government Employees and Workers has appealed to the finance ministry to complete the process for the next increase in dearness allowance (DA) and dearness relief (DR), effective from July 1, 2026, as soon as possible.

In a letter written to the secretary of the department of expenditure, the employee union said this process should be completed at the earliest. The union further said that the new rates, to be determined based on the relevant Consumer Price Index (CPI) data and the fixed formula, should be placed before the competent authority.

The union clarified that the current DA and DR rate from January 2026 is 60 percent. This rate was 46 percent in July 2023, rising to 50 percent in January 2024, 53 percent in July 2024, 55 percent in January 2025, 58 percent in July 2025 and 60 percent from January 2026. According to the union, this rise to 60 percent reflects the impact of continuously rising inflation.

The union also said its demand is not for any advance amount or additional benefit, but for the formal process linked to the instalment payable from July 1, 2026 to be completed without unnecessary delay. According to the union, the arrears and salary can then be disbursed as usual. The union also referred to rising expenses on education, household costs, travel and other family responsibilities, and specifically noted that this should be given particular attention with the festival season approaching.

The letter, signed by the union's general secretary M. S. Venkatesan, demanded that concerned officials be directed to begin the process of announcing the next DA/DR instalment as soon as possible. The letter records all the union's demands. However, this is not a government announcement of the DA/DR rate for July 2026, but a demand sent by the union.