Central government employees are waiting for the Finance Ministry to announce the next dearness allowance (DA) revision, with estimates suggesting that the rate could rise from 60% to 63% for June 2026.
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The calculation is based on the 12-month average of the All India Consumer Price Index for Industrial Workers (AICPI-IW), covering July 2025 to June 2026. The supplied figures put the average at 148.65, which produces an estimated DA rate of 63.76% under the stated formula. Since the government announces DA in whole-number percentages, a 63% rate is expected.
However, the revised rate and its effective date will only be confirmed through an official government announcement.
Employee representatives expect an announcement soon
The wait has continued despite the Labour Bureau releasing the June 2026 AICPI reading nearly a month ago.
Last week, MS Vengatesan, secretary general of the Confederation of Central Government Employees and Workers (CCGEW), wrote to the Finance Ministry asking it to begin the process for announcing the revised DA.
Some employee representatives believe the announcement could come shortly.
Manjeet Singh Patel, president of the All India New Pension Scheme Employees’ Federation, told ET Wealth that the announcement was likely within a week.
An unnamed source from the All India Defence Employees’ Federation also told ET Wealth Online that the file was being processed and an announcement could come any time during the week.
A CCGEW official separately indicated that the decision could be announced in the first week of October.
These are expectations shared by employee representatives and sources; they do not amount to an official confirmation from the government.
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Could the announcement come before Dussehra?
The timing of previous DA revisions offers some context, although it does not establish a fixed schedule.
The June-cycle DA announcement is often made around the festive period. But recent years show that the government has also announced the revision after Dussehra.
In 2025, Dussehra fell on October 2, while the DA order was issued on October 6. In 2024, Dussehra was on October 12 and the announcement followed on October 21.
Dussehra falls on October 20 in 2026. Whether the government announces the revision before or after the festival remains unknown.
Recent DA revision announcements
| Government order date | DA rate | Increase |
|---|---|---|
| April 22, 2026 | 60% | 2% |
| October 6, 2025 | 58% | 3% |
| April 2, 2025 | 55% | 2% |
| October 21, 2024 | 53% | 3% |
| March 12, 2024 | 50% | 4% |
| October 20, 2023 | 46% | 4% |
| April 3, 2023 | 42% | 4% |
| October 3, 2022 | 38% | 4% |
| March 31, 2022 | 34% | 3% |
| October 25, 2021 | 31% | 3% |
Source: Ministry of Finance, as cited in the supplied report.
How is the expected June 2026 DA calculated?
The DA calculation uses the 12-month average of the AICPI-IW. For this revision, the relevant period is July 2025 to June 2026.
The supplied data gives an average index reading of 148.65. The calculation then uses a linking factor of 2.88 to align the 2016-base index with the older 2001-base series used in the DA formula.
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The formula provided in the report is:
DA (%) = [(12-month average AICPI-IW × 2.88 − 261.42) ÷ 261.42] × 100
Using the reported average:
DA = [(148.65 × 2.88 − 261.42) ÷ 261.42] × 100
This gives an estimated result of approximately 63.76%. The report therefore expects the DA rate to be rounded to 63%.
AICPI-IW readings used for the calculation
| Month | Index value |
|---|---|
| July 2025 | 146.5 |
| August 2025 | 147.1 |
| September 2025 | 147.3 |
| October 2025 | 147.7 |
| November 2025 | 148.2 |
| December 2025 | 148.2 |
| January 2026 | 148.6 |
| February 2026 | 148.5 |
| March 2026 | 149.1 |
| April 2026 | 149.9 |
| May 2026 | 150.8 |
| June 2026 | 151.9 |
| 12-month average | 148.65 |
Source: Labour Bureau, as cited in the supplied report.
Will the DA increase be 3% or 4%?
The exact increase will be known only after the government issues its order.
Based on the supplied calculation, the DA rate is expected to move from 60% to 63%, which would mean a 3-percentage-point increase. The calculation is an estimate based on the reported index average and formula; it is not the final government decision.
Employees will need to wait for the Finance Ministry’s announcement to confirm the revised rate and other details.
Frequently Asked Questions
1. What is the expected DA rate for June 2026?
The supplied calculation estimates the rate at 63.76%. The report expects the government to announce 63%, but this has not been officially confirmed.
2. How much DA hike are central government employees expecting?
If the rate rises from 60% to 63%, the increase would be 3 percentage points.
3. When could the Finance Ministry announce the DA hike?
Employee representatives and sources cited in the report expect an announcement soon, possibly in the first week of October. The government has not confirmed a date.
4. Which months are used to calculate the June 2026 DA revision?
The calculation uses the AICPI-IW readings from July 2025 to June 2026.
5. Why is the AICPI-IW important for DA?
The 12-month average of the index is used in the DA formula to estimate the revised allowance rate.
6. Is the 63% DA rate confirmed?
No. It is an estimate based on the reported index data and calculation. The official rate will be known after the government announces the revision.
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The post DA Hike 2026: Will Finance Ministry Announce 3% Increase This Week? first appeared on informalnewz.
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