The dearness allowance is projected to increase to 63% from the current 60% from July 1, 2026, according to the latest data released by the Labour Bureau. The calculation for the DA has displayed a consistent increase across the past four months of 2026, with the DA calculation reaching 62.54% after April's inflation reading. The CPI-IW for April 2026 increased 0.8 percentage points to 149.9, providing the basis for the DA projection. The calculation point reached 65.54% in the fourth month, with the CPI-IW indices for the remaining two months determining the exact DA/DR figure for July 2026. If the CPI-IW remains substantially aligned with current projections for May and June, the DA/DR from July 2026 is projected to reach 63%. This projection holds significance as the data comes after the Union government constituted the 8th Pay Commission after the 7th Pay Commission formally ended on December 31, 2025.
The CPI-IW for April 2026 increased 0.8 percentage points to 149.9, providing the basis for the DA projection. Year-on-year inflation for April 2026 stood at 4.46% compared to 2.94% in April 2025, as reported by the Labour Bureau. According to an analysis by Financial Express, the DA calculation could reach 63.72% by June 2026, with the DA being rounded off to the closest whole number. Up to 1.2 crore governmental employees might receive 63% DA and DR by June 2026, representing the second hike after the Centre approved a 2% increase from 58% to 60% that took effect on January 1, 2026. The revised amount is added to the monthly salary and is fully taxable. If the CPI-IW remains broadly in line with current projections for May and June, the DA and DR rates may increase from the existing 60% to 63% from July 1, 2026.
For Level-1 employees at the central government with minimum basic compensation of ₹18,000, a projected 3% increase would result in an extra ₹540 across six months from July to December 2026. The DA part of their salary would increase from ₹10,800 to ₹11,340 monthly. With the DA hiked by 3%, the total DA amount would increase to ₹11,340, resulting in an extra ₹3,240 across six months. Similarly, a pensioner with minimum basic pension of ₹9,000 may have a projected hike of ₹270 per month, compounding to ₹1,620 over six months. Employees with higher basic pay would see proportionately larger gains - for example, an employee with basic pay of ₹35,400 would receive an additional ₹1,062 monthly, while a pensioner with ₹25,000 basic pension would see an increase of ₹750. For Level 5 employees with minimum basic salary of ₹29,200, a 3% DA hike would increase their salary by approximately ₹876 per month.
A state government employees' forum leaders said that West Bengal CM Suvendu Adhikari has assured that pending dearness allowance dues will be cleared as per the Supreme Court order. According to Mint, a one and a half hour long meeting was held at the state secretariat on Monday between Adhikari and forum representatives. Bhaskar Ghosh, convenor of the forum, said that Adhikari has assured them the apex court's orders would be implemented in letter and spirit. "He has also assured payment of 25% of the arrears in compliance with the court's directions," Ghosh stated, adding that there was "some difference of opinion" on the percentage of arrears but Adhikari assured further discussions will be held on the issue. The CM also promised a gradual reduction of the gap between the DA received by state employees of the Central government and that of the state. The forum's leader stated that Adhikari had committed to implementing the Seventh Pay Commission recommendations by January next year.
Since the recommendations from the 8th Pay Commission are not yet available, the revisions to the DA will be in accordance with the formula of the 7th Pay Commission. The Centre has approved the hike of 2% from 58% to 60% as the 7th Pay Commission formally ended on December 31, 2025. This represents the second DA hike for government employees following the initial increase in January 2026. Several employee unions and the National Council of Joint Consultative Machinery (NC-JCM) have been pressing the government to merge at least 50% of DA with basic pay before the implementation of the 8th Pay Commission recommendations. Employee bodies argue that such a move would provide immediate relief to employees and pensioners who continue to face rising living costs while awaiting the next pay revision, reduce arrears burden, and establish a stronger base for determining the fitment factor under the 8th Pay Commission.
