The Central Government has not yet announced the Dearness Allowance (DA) for July 2026. The increase is less likely to be announced during weekends (Saturday-Sunday). If it is not announced on Saturday or Sunday, it is possible that the government may postpone it until the next weekly cabinet meeting, which is usually held on Wednesday. Accordingly, the next Cabinet meeting may be held on 28 October 2026.

Can the announcement of DA be postponed till the next cabinet meeting?

The government makes several big announcements for various sectors after its weekly cabinet meetings. Since DA and Dearness Relief (DR) affect more than one crore central employees and pensioners, the government often announces the increase only after a cabinet meeting. So, it is possible that the government may announce it in the upcoming cabinet meeting on October 28. However, there is no fixed rule that hike in DA is announced only after the Cabinet meeting. The ‘Department of Expenditure’ of the Finance Ministry can also issue notification of increase in DA without waiting for Cabinet announcement.

Long wait, still no additional announcement in DA

It was expected that the government would announce the hike in DA in the first week of October, but no such announcement was made in the first weekly cabinet meeting of the month held on October 6. Many experts feel that the additional announcement will be made in the second weekly meeting of the month i.e. on October 14. However, the government on that day approved ‘performance-linked bonus’ for railway employees, but said nothing about the increase in DA.

On October 16, the government announced ‘Non-Performance-Linked Bonus’ (Non-PLB) for central employees, but still did not say anything about DA. Employees had hoped that the government would announce the increase in DA after the cabinet meeting on Wednesday (October 21), the day after Dussehra. But their hopes were dashed as the government did not hold its weekly meeting that day.

DA rates apply

All India New Pension Scheme Employees Federation (AINPSEF) President Manjit Singh Patel says the new DA rate will be applicable for the period July-December 2026. If the government announces this this month, the employees will get July-October arrears along with the November-end salary. Because salary is calculated from 15th of one month to 15th of next month.

How much can DA increase: 3% or 4%?

For calculating DA, the average retail inflation rate from July 2025 to June 2026 will be considered as base. Applying this average inflation rate to the DA calculation formula, DA may increase by 3 percentage points. This means that the current DA rate may increase from 60 percent to 63 percent.

What is the impact on salary?

Employees get DA based on their basic pay. When DA increases, their gross salary also increases. Another part of pay which is linked to DA is Transport Allowance (TPTA), which also increases as DA increases. For example, take a level 5 employee whose basic salary is Rs. 29,200 is. If the DA increases from 60% to 63%, their gross pay per month will be around Rs. 876 will increase. Besides, for cities with high TPTA, their transport allowance will also increase by around Rs 108.