DA for central government staff may rise 3 per cent to 63 per cent, estimates suggest

Central government employees and pensioners are now waiting for the announcement of the hike in dearness allowance (DA). Going by the trend of recent years, DA is raised in April and October, so the announcement is expected in early October this time as well.

Based on the AICPI figures for June 2026, DA is estimated to rise by 3 per cent and reach 63 per cent. This is only an estimate. The actual increase will be clear only after the government's official announcement.

DA for central government employees is revised twice a year. In earlier years, the government has often announced the June-linked hike before Dussehra. But this is not a fixed practice or rule. On the last two occasions, the DA hike was announced only after Dussehra had passed. This year Dussehra falls on October 20, so employees are watching whether the government announces it before the festival.

Government orders of recent years show that each hike has been different. The order of April 22, 2026 raised DA by 2 per cent to 60 per cent. On October 6, 2025, a 3 per cent rise took it to 58 per cent. On April 2, 2025, a 2 per cent rise took it to 55 per cent, and on October 21, 2024, a 3 per cent rise took it to 53 per cent. On March 12, 2024, a 4 per cent rise took it to 50 per cent, and on October 20, 2023, a 4 per cent rise took it to 46 per cent. On April 3, 2023, a 4 per cent rise took it to 42 per cent, and on October 3, 2022, a 4 per cent rise took it to 38 per cent. On March 31, 2022, a 3 per cent rise took it to 34 per cent, and on October 25, 2021, a 3 per cent rise took it to 31 per cent.

DA is calculated by the Labour Bureau on the basis of the 12-month average of the All India Consumer Price Index (AICPI), which is released every month. This time, AICPI figures from July 2025 to June 2026 will be used. The average AICPI reading for these 12 months is reported to be 148.65.

Using the DA formula, the allowance for June 2026 could reach about 63.76 per cent. But the Centre uses round figures when fixing DA, so the estimate is 63 per cent. That is, if the current 60 per cent DA is raised by 3 per cent, the allowance of central government employees could go up to 63 per cent. For now, this is only a guess based on the available data and the DA calculation.

The final decision rests with the government. The final rate will be set only after the official order is issued. About a month has passed since the Labour Bureau released the June 2026 AICPI reading, so employees are now waiting for the Centre's announcement. If the government approves a 3 per cent rise, DA could go up from the current 60 per cent to 63 per cent.