On April 18, the Centre increased dearness allowance (DA) for employees by 2% for the January 2026 cycle, raising the total DA to 60%. And since we are nearing the next probable cycle, many are wondering when will the next DA hike be announced and how much can central government employees expect?
When will the next hike be announced and how much to expect?
Come July 2026, central government employees are likely to see dearness allowance (DA) of about 2 to 3% in case current inflation trend continues. as per an early estimates based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
On April 18, the Centre approved a 2% increase inDA for central government employees under the January 2026 revision cycle, taking the overall DA to 60%. The next DA revision for the July 2026 cycle. However the reviosion is expected in September 2026.
The DA is determined based on the 12-month average of the All India Consumer Price Index for Industrial Workers (CPI-IW). “Once we get the AICPI-W data for June 2025 to June 2026, we will know by how many points inflation has risen or fallen,” said Manjeet Singh Patel, President of All India NPS Employees Federation, told Moneycontrol. Follwing which the DA amount will be decided.
How it would impact your salary?
- With DA currently at 60%, a level-one central government employee with a basic salary of ₹18,000 received an additional ₹360 per month from January 2026.
- If it rises to 63% in the July 2026 cycle, he is then slated for another ₹540 monthly increase,
- This means the total DA hike would be ₹900 per month.
DA & DR impact to around 50L employees and 68L pensioners
The Centre on April 18 increased DA and dearness relief (DR) by two per cent from the existing rate of 58% of basic pay, benefiting around 50.46 lakh central government employees and 68.27 lakh pensioners.
Briefing about the cabinet decisions, Information and Broadcasting Minister Ashwini Vaishnaw said, “Another very big decision was taken today. I would like to extend my heartiest congratulations. DA and DR have been increased for all our central government employees and pensioners, which will cost the Government of India a total of Rs. 6,791 crore,” he said.
“Basically, DA and DR will become 60% of the basic pay from January 1, 2026. It has been increased by 2%, from 58% to 60%. It will become 60% of the basic pay. There are a total of about 50 lakh employees and 68 lakh pensioners of the Government of India. This will be a huge benefit for all of them”
