DA hike July 2026: Will cabinet approve dearness allowance increase for central government employees on October 28?

Central government employees are awaiting the announcement of the July 2026 Dearness Allowance (DA) revision. The Union Cabinet meeting on October 14 did not bring an announcement, leaving beneficiaries waiting for clarity on the next instalment.

Employees had hoped for an update last week as well, but the government did not hold its usual weekly Cabinet meeting on Wednesday, October 22, following Dussehra.

According to a latest Economic Times report, “In the festive season, when Diwali is around, more than 55 lakh central government employees have been waiting for a dearness allowance (DA) hike announcement. As the government is set to hold its weekly cabinet meeting on Wednesday (October 28, 2026), employees’ long wait can be over.”

If the Cabinet meets on October 28, employees will be watching for an official announcement on the DA revision.

What is the current DA rate?

According to a Ministry of Finance release dated April 18 2026, the Union Cabinet approved a 2% increase in DA, effective from January 1 2026. This raised the rate from 58% to 60% of basic pay.

DA is a cost-of-living adjustment paid to central government employees as a percentage of basic pay to help offset inflation.

How much DA hike can employees expect?

The July 2026 revision can be assessed using the All India Consumer Price Index for Industrial Workers (AICPI-IW), with the 12-month average from July 2025 to June 2026. A 3% or 4% increase is only an illustrative scenario until the government announces the actual rate.

At the current DA rate of 60%, a central government employee drawing a basic salary of ₹18,000 receives ₹10,800 as DA every month. This is calculated by multiplying the basic salary by the DA rate, i.e., ₹18,000 × 60 ÷ 100 = ₹10,800.

• If DA increases by 3%, the rate would rise to 63%, bringing the monthly DA to ₹11,340. This would mean an additional ₹540 per month.
• If DA increases by 4%, the rate would rise to 64%, bringing the monthly DA to ₹11,520. This would mean an additional ₹720 per month.

These estimates show the additional DA alone, before deductions, and assume the existing DA rate is 60%. The actual increase will depend on the rate approved by the government.

The July 2026 revision would apply retrospectively from July 1 2026, subject to the terms of the official announcement. Employees must await confirmation of the revised rate and payment arrangements.

Disclaimer: This is for informational purposes only. Please visit the official government website for the latest updates.