Central Government employees will get 63% Dearness Allowance (DA) for the period July-December 2026. The Central Government on Wednesday, 28 October 2026 announced that Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners will be increased by 3% to 63% from the existing rate of 60%. The new rates of DA and DR will be applicable from July 1, 2026.
According to a Press Information Bureau (PIB) release, the Union Cabinet chaired by Prime Minister Narendra Modi has approved additional installments of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. The increase will be effective from July 1, 2026. To compensate for inflation, the existing rate of 60% of basic pay/pension has been increased by 3%.
The government says that this increase in DA will burden the government exchequer by Rs 10,016 crore annually. About 48 lakh employees and 68 lakh pensioners will benefit from this increase.
The 3% increase in DA also means that a Level 1 employee who was getting DA at the rate of 60% which was around Rs 10,800, will now get Rs 11,340. That is, he will get an additional profit of Rs 540. Due to delay in announcement of DA, government employees will also get arrears.
AICPI Index July 2025 to June 2026
The DA is based on the 12-month average retail inflation as measured by the ‘All India Consumer Price Index’ (AICPI-IW) for the period July 2025 to June 2026.
When will 63% DA rate apply?
All India Defense Employees Federation (AIDEF) Secretary C. Sreekumar said in an ET report that the DA rate of 63% will be applicable from July 2026 and will remain in effect until the DA hike is announced in January. Sreekumar says that along with the salary received at the end of November, the employees will also get arrears of four months (July-October 2026). This also means that central government employees will not get additional DA along with their October-end salary. Instead, they will get a raise at the end of November. They will not get arrears with this month’s salary, as salary is calculated from 15th of one month to 15th of next month. However, Sreekumar says AIDEF will request the government to pay the DA before Diwali.
Increase in DA under 6th and 5th Pay Commission
For central government employees who draw pay under the Sixth Pay Commission, the DA rate will increase from 262% to 269%. For central government employees who draw pay under the Fifth Pay Commission, the DA rate will increase from 483 percent to 497 percent.
Impact on salaries of level 1-10 employees
| salary level | Minimum Basic Pay (per month) | DA amount (at 60%) | DA amount (at 63%) | Salary increase every month |
| Level 1 | ₹ 18,000 | ₹ 10,800 | ₹ 11,340 | ₹ 540 |
| Level 2 | ₹ 19,900 | ₹ 11,940 | ₹ 12,537 | ₹ 597 |
| Level 3 | ₹ 21,700 | ₹ 13,020 | ₹ 13,671 | ₹ 651 |
| Level 4 | ₹ 25,500 | ₹ 15,300 | ₹ 16,065 | ₹ 765 |
| Level 5 | ₹ 29,200 | ₹ 17,520 | ₹ 18,396 | ₹ 876 |
| Level 6 | ₹ 35,400 | ₹ 21,240 | ₹ 22,302 | ₹ 1,062 |
| Level 7 | ₹ 44,900 | ₹ 26,940 | ₹ 28,287 | ₹ 1,347 |
| Level 8 | ₹ 47,600 | ₹ 28,560 | ₹ 29,988 | ₹ 1,428 |
| Level 9 | ₹ 53,100 | ₹ 31,860 | ₹ 33,453 | ₹ 1,593 |
| Level 10 | ₹ 56,100 | ₹ 33,660 | ₹ 35,343 | ₹ 1,683 |
AIDEF calls for a change in the way DA is determined
Sreekumar said that the DA is not able to recover the actual increase in prices as the retail market prices of essential commodities are much higher than the prices considered in the calculations by the Labor Ministry. Sreekumar says it is hoped that the 8th CPC will remove this serious anomaly.
