Central government employees awaiting the July 2026 dearness allowance (DA) revision may get an announcement after Dussehra, with employee representatives expecting a decision at the Cabinet meeting on Wednesday, October 21.
The government has not confirmed an announcement date or the size of the hike.
Expectations had centred on the October 14 Cabinet meeting, but it ended without a DA announcement. The government approved a productivity-linked bonus for Railway employees, leaving those awaiting the allowance revision looking to the next meeting.
Why October 21 is in focus
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C. Srikumar, secretary of the All India Defence Employees' Federation (AIDEF), in an ET report, expects DA hike to be announced at Wednesday's Cabinet meeting. The government has not confirmed when the revision will be announced.
Could DA increase from 60% to 63%?
The current DA rate for central government employees is 60% of basic pay. The Cabinet last increased it by two percentage points in April 2026, taking it from 58% to 60%. Dearness relief for pensioners was raised by the same amount.
For the July revision, DA could rise by three percentage points, taking the rate from 60% to 63%. The final rate will be known only after the government announces its decision.
DA is revised twice a year using the 12-month average of the All-India Consumer Price Index for Industrial Workers. For the July 2026 revision, the relevant period is July 2025 to June 2026.
There is no requirement for the government to announce a DA revision on a Wednesday. While regular Cabinet meetings are generally held that day, announcements have also come on other days.
The previous DA increase, for instance, was announced on Saturday, April 18, 2026. The day of the week alone is therefore no indication of when a decision will come.
Employee bodies have urged the government to announce the pending revision, citing rising household expenses.
In a letter dated October 10, AIDEF said higher prices of essential commodities were putting central government employees and pensioners under financial strain. It requested an early announcement of the July revision.
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