Central government employees are still waiting for the Centre to formally announce the next revision in Dearness Allowance (DA), nearly a month after the Labour Bureau released the All India Consumer Price Index for Industrial Workers (AICPI-IW) for June 2026. The latest inflation-linked data indicates that the upcoming DA revision could result in a 3 per cent increase, taking the total DA rate from 60 per cent to 63 per cent of basic pay. However, the revised rate will become official only after the Ministry of Finance issues the required notification.
The official announcement is expected soon, with employee organisations seeking an early decision ahead of the festive season.
According to reports, MS Vengatesan, secretary general of the Confederation of Central Government Employees & Workers (CCGEW), has urged the Finance Ministry to speed up the process. The report added that the required paperwork is currently being processed.
Based on these inputs, the formal notification could come by the first week of October, although the government has not announced a specific date yet.
The delay means central government employees continue to wait for confirmation of the revised DA rate, despite the completion of the inflation data required for the calculation.
Why Dussehra Timing Is Important For DA Announcement
DA revisions have frequently been announced around the festive period, although the exact timing has varied from year to year. In 2024, Dussehra was celebrated on October 12, while the government announced the DA revision on October 21. In 2025, Dussehra fell on October 2, and the corresponding announcement came on October 6.
This year, Dussehra falls on October 20, leaving employees and unions watching for a possible announcement earlier in October.
The previous DA revision was announced through a government order dated April 22, 2026, raising the allowance from 58 per cent to 60 per cent, representing a 2 per cent increase.
How The Expected 63% DA Rate Is Calculated
The DA revision is linked to the 12-month average of the AICPI-IW. For the July 2025 to June 2026 period, the average index worked out to 148.65.
For the calculation, the average based on the current 2016 base year is first linked to the older 2001 base year. The 148.65 average is multiplied by the linking factor of 2.88, resulting in a converted figure of approximately 428.11.
The standard formula is then applied: [(428.11 – 261.42) / 261.42] × 100 = 63.76 per cent
This produces a calculated DA rate of 63.76 per cent. As per the usual practice of ignoring the decimal portion for the revision, the expected revised DA is 63 per cent.
Final DA Hike Confirmation Still Pending
While the AICPI-IW data points towards a 3 per cent increase, the revised DA rate is not official yet. Central government employees will have to wait for the Ministry of Finance to issue the formal notification before the increase takes effect.
If the 3 per cent revision is approved, the DA rate will rise from the existing 60 per cent to 63 per cent, increasing the DA component of employees’ salaries accordingly. The actual rupee benefit will depend on an employee’s basic pay.
For now, the calculation provides an indication of the expected revision, while the final decision rests with the government.
