DA hike news July 2026: Will Centre announce DA hike on Oct 28? How much increase can employees expect? Check details
Central government employees and pensioners are still waiting for the announcement of the July 2026 dearness allowance (DA) and dearness relief (DR) hike. With the government yet to confirm the revision, attention has now shifted to the next weekly Union Cabinet meeting, which could take place on October 28.
The Centre generally announces major policy decisions following its weekly Cabinet meetings, making the upcoming meeting a possible occasion for the DA and DR announcement. The revision is significant as it is expected to benefit more than one crore central government employees and pensioners.
However, there is little indication that the government will announce the hike over the weekend. If no announcement is made on Saturday or Sunday, employees may have to wait until the next Cabinet meeting for an update, according to The Economic Times.
Will Centre announce DA hike after October 28 Cabinet meeting?
Twice a year, the government nnounces DA and DR revisions after Cabinet meetings, but this is not a mandatory procedure. The Department of Expenditure under the Finance Ministry can issue a notification approving the revised DA rate without waiting for a Cabinet announcement.
The Centre announced the non-performance-linked bonus (non-PLB) for central government employees on October 16 but did not make any announcement regarding the DA revision.
Employees had also anticipated an announcement following the Cabinet meeting expected on October 21, a day after Dussehra. However, their expectations were disappointed as the government did not hold its weekly meeting that day.
DA hike July 2026: How much increase can employees expect?
The July 2026 DA revision is expected to bring an increase of around three percentage points, taking the existing DA rate from 60% to 63%, as per the ET report.
The calculation is based on the average retail inflation recorded between July 2025 and June 2026. Applying the average inflation figures to the prescribed DA calculation formula indicates a possible three-percentage-point increase.
However, the final revised rate will depend on the government’s official announcement.
How will the DA hike affect employees’ salaries?
Dearness allowance is calculated as a percentage of an employee’s basic pay. Any increase in the DA rate directly raises the DA component of the monthly salary, resulting in a higher gross payout.
The transport allowance (TPTA) is another salary component linked to DA. It also increases following a DA revision, adding to the overall financial benefit for eligible central government employees.
How often does the Centre revise DA and DR?
DA is provided to central government employees to cushion the effect of rising inflation on their day-to-day expenses. Pensioners receive a similar benefit in the form of dearness relief (DR). Both allowances are determined as a percentage of basic salary or pension.
The government usually reviews and revises DA and DR twice annually, with the revised rates taking effect from January 1 and July 1. While the January revision is generally announced in March or April, the July adjustment typically comes in October.
The announcement may be made after the date from which the revision becomes effective. In such cases, eligible employees and pensioners receive arrears for the intervening period.
