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India central government employees may see Dearness Allowance rise to 64%
Based on the latest All India Consumer Price Index for Industrial Workers (AICPI-IW) data from the Labour Bureau, the Dearness Allowance (DA) for central government employees and pensioners in India is projected to rise to approximately 64%.
The July 2026 AICPI-IW index showed an increase of 1.3 points, bringing the reading to 153.2. Using the 12-month average formula, the calculated DA rate stands at roughly 64.38%. This would be an increase from the current 60% rate effective from January 2026.
While the central government has not yet made an official announcement, a decision is expected between September and November, potentially in October. For an employee with a basic pay of ₹18,000, an increase from 60% to 64% DA would result in a monthly increase of ₹720, totaling ₹8,640 annually.