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Central Government employees and pensioners are waiting for the Union Cabinet to approve the Dearness Allowance (DA) and Dearness Relief (DR) revision for July 2026. The price index data already fixes the new rate at 63%, up from 60%. This is also one of the last DA revisions under the 7th CPC framework, and it directly affects how much the 8th Pay Commission fitment factor has to cover. Here is what is confirmed, the maths, and what it means for your salary.
🆕 Latest Update — 27 October 2026
The July 2026 DA/DR revision has still not been announced. Cabinet meetings on 6, 14 and 16 October passed without a DA decision (the 14 October meeting approved the productivity-linked bonus for railway employees; the ad-hoc bonus for other eligible staff was announced on 16 October). No meeting was held around Dussehra on 21 October. Reports now point to the Cabinet meeting expected on Wednesday, 28 October 2026.
- Rate: 63% (from 60%), as fixed by the CPI-IW data released on 31 July 2026.
- Arrears: if approved by the end of October, July–October (4 months) arrears are expected with the November salary.
- Example: Level 5 (₹29,200 basic) gains about ₹876 a month plus about ₹108 more Transport Allowance in higher-TPTA cities; 4-month arrears ≈ ₹3,900.
- Is this delay unusual? In the previous five years, the July revision was announced between 18 September and 21 October, so 2026 is later than usual — but a delay does not change the rate or the 1 July effective date.
We will update this page as soon as the Cabinet decides. DA merger questions? See 8th Pay Commission DA Merger: Latest Update.
Background: 63% Is Settled by the Index
- Current DA: 60% of basic pay, effective 1 January 2026. The Cabinet approved this 2-point increase (58% → 60%) in April 2026.
- July 2026 DA: The Labour Bureau released the June 2026 CPI-IW on 31 July 2026. With the full 12-month data in, the 7th CPC formula gives 63%, a 3-point increase.
- Approval: As of 27 October 2026, the Cabinet has not yet announced it. The July revision is usually approved between mid-September and October, and paid with arrears from 1 July.
- Who benefits: About 48.66 lakh employees and 66.55 lakh pensioners, according to figures cited in media reports.
⚠️ Not yet notified (as of 27 October 2026)
63% is what the formula gives, but the Government has not issued the order yet. We will update this page and our Updates section once the Cabinet decision and the Department of Expenditure office memorandum are out.
The CPI-IW Numbers Behind 63%
DA is linked to the All India Consumer Price Index for Industrial Workers (CPI-IW, base 2016 = 100) published every month by the Labour Bureau. The 7th CPC formula uses the 12-month average of the index, and the result is rounded down to a whole number.
| Month | CPI-IW (2016 = 100) |
|---|---|
| January 2026 | 148.6 |
| February 2026 | 148.5 |
| March 2026 | 149.1 |
| April 2026 | 149.9 |
| May 2026 | 150.8 |
| June 2026 | 151.9 |
The rising trend from April to June pushed the computed rate to about 63.75%, which rounds down to 63%.
How Much More You Will Get
A 3-point DA increase adds 3% of your basic pay every month. Once approved, three months of arrears (July, August, September) are usually paid together with the revised salary.
| Level | Entry Basic | DA @ 60% | DA @ 63% | Increase / month | Arrears (Jul–Sep) |
|---|---|---|---|---|---|
| Level 1 | ₹18,000 | ₹10,800 | ₹11,340 | ₹540 | ₹1,620 |
| Level 4 | ₹25,500 | ₹15,300 | ₹16,065 | ₹765 | ₹2,295 |
| Level 6 | ₹35,400 | ₹21,240 | ₹22,302 | ₹1,062 | ₹3,186 |
| Level 7 | ₹44,900 | ₹26,940 | ₹28,287 | ₹1,347 | ₹4,041 |
| Level 8 | ₹47,600 | ₹28,560 | ₹29,988 | ₹1,428 | ₹4,284 |
| Level 10 | ₹56,100 | ₹33,660 | ₹35,343 | ₹1,683 | ₹5,049 |
Pensioners get the same 3-point increase in Dearness Relief on their basic pension. For example, a basic pension of ₹20,000 means ₹600 more a month.
Four-month arrears if approved in October (July–October 2026)
| Level | Entry Basic | Extra DA / month (3%) | Arrears for 4 months |
|---|---|---|---|
| Level 1 | ₹18,000 | ₹540 | ₹2,160 |
| Level 3 | ₹21,700 | ₹651 | ₹2,604 |
| Level 5 | ₹29,200 | ₹876 | ₹3,504 |
| Level 6 | ₹35,400 | ₹1,062 | ₹4,248 |
| Level 7 | ₹44,900 | ₹1,347 | ₹5,388 |
| Level 8 | ₹47,600 | ₹1,428 | ₹5,712 |
| Level 10 | ₹56,100 | ₹1,683 | ₹6,732 |
| Level 11 | ₹67,700 | ₹2,031 | ₹8,124 |
| Level 12 | ₹78,800 | ₹2,364 | ₹9,456 |
DA on Transport Allowance also rises by 3 points, and pensioners get the same 3-point increase in Dearness Relief.
Will DA Be Merged With Basic Pay?
Every time DA crosses 50%, there is talk of merging it with basic pay. The Government has answered this directly. In a written reply in the Lok Sabha on 1 December 2025, Minister of State for Finance Pankaj Chaudhary said that "no proposal regarding merger of the existing Dearness Allowance with the Basic Pay is under consideration". DA and DR will continue to be revised every six months on the basis of CPI-IW.
In practice, DA is merged only when a new pay commission's matrix is implemented, through the fitment factor. That is expected to happen with the 8th CPC, with effect from the reference date.
Why DA Matters for the 8th CPC Fitment Factor
The 8th CPC is widely expected to take effect from 1 January 2026. On 31 December 2025 DA was 58%, so any fitment factor has to be at least 1.58 just to keep Basic + DA unchanged. Everything above 1.58 is the real increase:
- 1.92x ≈ 22% real increase over Basic + DA
- 2.28x ≈ 44% real increase
- 2.57x ≈ 63% real increase
- 3.833x (NC-JCM demand) ≈ 143% real increase
There is also a practical effect on arrears. DA paid at 60% and then 63% during the arrears period is adjusted against the new pay, which restarts DA at a low rate. So your actual arrears will be smaller than the jump in basic pay suggests. Our Arrears Calculator now accounts for this month by month.
DA History Since the 7th CPC Began
DA was reset to 0% on 1 January 2016 when the 7th CPC matrix began, and it has climbed steadily since:
| Effective From | DA Rate |
|---|---|
| 1 January 2016 | 0% (7th CPC reset) |
| 1 January 2024 | 50% |
| 1 July 2024 | 53% |
| 1 January 2025 | 55% |
| 1 July 2025 | 58% |
| 1 January 2026 | 60% |
| 1 July 2026 | 63% (expected, pending approval) |
When DA crossed 50% in January 2024, HRA moved up to 30% / 20% / 10% and several allowances rose by 25%, as the 7th CPC rules provide. These higher rates are why the gross salary jump under the 8th CPC may look smaller than expected. See our HRA Calculator for details.
🧮 Try It Yourself
See what these developments could mean for your pay with our 8th Pay Commission Calculator for Central Govt Employees, the Fitment Factor Calculator or the Arrears Calculator.
Frequently Asked Questions
What is the DA rate from July 2026?
When will the July 2026 DA hike be announced?
Will DA be merged with basic pay in 2026?
Will DA continue after the 8th Pay Commission?
Has the July 2026 DA hike been announced?
When will DA arrears for July 2026 be paid?
Sources
- StaffNews — DA/DR from July 2026 at 63%, CPI-IW for June 2026 released
- Goodreturns — DA hike July 2026 (12 Jun 2026)
- Gconnect — Lok Sabha reply: no DA merger (1 Dec 2025)
- StaffNews — No merger of DA with basic pay: reply in Lok Sabha
- Karmactive — July 2026 DA hike still pending (24 Oct 2026)
- Times Now Hindi — DA may wait till 28 October cabinet (25 Oct 2026)