India central government employees may receive 3% dearness allowance hike

Central government employees and pensioners in India are expected to receive a 3% increase in dearness allowance (DA), potentially raising the rate from 60% to 63% of their basic pay.

The adjustment is based on the 12-month average of the All India Consumer Price Index for Industrial Workers (AICPI/CPI-IW) for the period spanning July 2025 through June 2026. Once approved by the Union Cabinet, the hike is expected to be effective retrospectively from July 1, 2026, meaning recipients will likely receive arrears for the intervening months.

Representatives from various employee federations, including the Confederation of Central Government Employees and Workers (CCGEW) and the All India New Pension Scheme Employees Federation, have been monitoring the process. While official announcements often coincide with major festivals like Dussehra, an update is anticipated shortly as the file is reportedly being processed.