Over 1.2 crore central government employees and pensioners are eagerly waiting for the next increase in Dearness Allowance (DA) and Dearness Relief (DR), due from July 1, 2026.
In this regard, the Confederation of Central Government Employees & Workers has written to the Finance Ministry seeking an early decision on the next instalment.
In its September 24 letter, the Confederation asked the government to speed up the process and make the announcement at the earliest.
“The request is only that the formal process and announcement may kindly be completed at the earliest,” the letter said. It added that the benefit should be reflected in salary from the effective date, with arrears paid in the normal manner.
DA is currently 60%
DA is revised twice a year, from January 1 and July 1, to compensate government employees for the impact of inflation.
The calculation is linked to the Consumer Price Index for Industrial Workers (CPI-IW). Under the 7th Pay Commission framework, the DA rate is derived using the relevant 12-month average CPI-IW against the prescribed base.
The last DA hike was announced in April 2026. The government raised DA by 2 percentage points to 60%, with effect from January 1, 2026. The corresponding DR for pensioners was also increased by 2 percentage points. The increase benefits around 50 lakh serving central government employees and around 68 lakh pensioners.
The Confederation’s letter records the recent movement in DA from 46% in July 2023 to 50% in January 2024, 53% in July 2024, 55% in January 2025, 58% in July 2025 and 60% from January 2026.
“The recent movement in DA/DR rates itself reflects the continuing impact of price rise, i.e. from July 2023 – 46%, January 2024 – 50%, July 2024 – 53%, January 2025 – 55%, July 2025 – 58% and from January 2026 – 60%. Thus, within the recent period, DA/DR has moved substantially upward, from 46% to the present 60%, reflecting the cumulative effect of price movements,” the letter said.
The exact July 2026 increase will depend on the applicable CPI-IW data and formula. The Confederation has therefore not demanded a particular percentage. Instead, it has asked the government to process the proposal once the required data is available.
The organisation said the timing is important because employees face expenses related to education, household needs, travel and the festive season.
What about the 8th Pay Commission?
The July 2026 DA revision is also important because the 8th Central Pay Commission is now working on the next pay structure.
The 8th Pay Commission was formally constituted through a government notification dated November 3, 2025. It has been given 18 months to submit its report.
The Commission has already invited representations from employees, pensioners and other stakeholders. Its latest schedule shows consultations and visits across different cities, including Bengaluru in October and Mumbai later in October 2026.