DA hike July 2026: still not announced, what 63% DA would mean for salary and pension
The DA hike due from 1 July 2026 is not announced yet. DA is 60% now. What a 3 point rise to 63% would add to pay and pension, and how arrears work.
About 50 lakh central government employees and 68 lakh pensioners are still waiting for the dearness allowance (DA) and dearness relief (DR) hike that is due from 1 July 2026. As of 22 October 2026 the government has not announced it. Here is where things stand and what the expected rise would mean for your pay or pension.
What DA is now
DA is 60% of basic pay from 1 January 2026. The Cabinet approved that 2 point rise, from 58%, on 18 April 2026, and the Finance Ministry's Department of Expenditure issued the order on 22 April 2026. Pensioners get the same rate as dearness relief on their basic pension. This rate stays until a new order is issued.
Why the July hike is late
DA is revised twice a year, from 1 January and from 1 July. The July rise is usually approved between late September and October. In recent years the orders came on 3 October 2022, 20 October 2023, 21 October 2024 and 6 October 2025, as listed by The Economic Times.
This year the Cabinet met on 14 October 2026 and approved a bonus for railway staff, but said nothing on DA. The ad hoc bonus for other central staff followed days later, again without DA. The Economic Times reported on 21 October 2026 that no Cabinet meeting was held that day, and that the Confederation of Central Government Employees and Workers held a lunch-hour protest on 16 October to demand the hike.
How much it may be
The rise follows a fixed formula from the 7th Pay Commission, based on the 12-month average of the Labour Bureau's consumer price index for industrial workers. For the July rise that is July 2025 to June 2026. On that data The Economic Times expects a rise of 3 points, to 63%. This is an estimate until the government issues the order.
What 63% would add
DA is worked out on basic pay only, not on HRA or other allowances. A 3 point rise adds 3% of basic pay each month:
- Basic pay ₹18,000 (Level 1): ₹540 more a month
- Basic pay ₹35,400 (Level 6): ₹1,062 more a month
- Basic pay ₹44,900 (Level 7): ₹1,347 more a month
- Basic pension ₹9,000: ₹270 more a month as dearness relief
These amounts are before income tax and NPS or UPS deductions.
Arrears
The rise counts from 1 July 2026, whatever date the order comes. So the extra amount for every month from July until the order reaches your pay office is paid later as arrears. For someone on ₹18,000 basic pay, July to October alone would be ₹2,160 of arrears at 63%.
Who this covers
This order covers central government employees and central government pensioners, including defence and railway staff through their own ministries' orders. State government employees get DA under their own state's orders, which often follow the central rate later.
We will update this page when the order is issued.
Sources: Department of Expenditure: DA order of 22 April 2026, PM India: Cabinet approves DA and DR from 1 January 2026, The Economic Times: Why is there delay in DA hike announcement, Mint: Cabinet skips July 2026 DA decision.
Rules, rates and limits change. Check the official source linked above before you rely on a figure here. Posts never contain referral or affiliate links from the writer.
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