📢 DA/DR from July 2026 Confirmed at 63% for Central Government Employees and Pensioners

Key Highlights

The Labour Bureau has released the All-India Consumer Price Index for Industrial Workers (CPI-IW) for June 2026.
The CPI-IW increased by 1.1 points, rising from 150.8 in May 2026 to 151.9 in June 2026.
Based on the latest CPI-IW data, the Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners are confirmed at 63% from July 2026 under the 7th Central Pay Commission (CPC).
This represents a 3% increase over the existing 60% DA/DR applicable from January 2026.

DA/DR Calculation Status

Period	DA/DR Rate
January 2026	60%
July 2026	63% (Confirmed)
Increase	3%

As per the prescribed method, the decimal value (63.75%) is ignored and the DA/DR is rounded down to 63%.

CPI-IW Trend (2026)

Month	CPI-IW (2016=100)
January	148.6
February	148.5
March	149.1
April	149.9
May	150.8
June	151.9

The continuous rise in CPI-IW during the first half of 2026 has resulted in the confirmed increase in DA/DR.

Inflation Data

Year-on-Year Inflation (June 2026): 4.76%
Year-on-Year Inflation (June 2025): 2.55%

This indicates a higher inflation trend compared to the previous year.

Expected Approval

The revised 63% DA/DR is expected to receive formal approval from the Union Cabinet during September–October 2026.
The enhanced rate will be effective from 1 July 2026.

8th Central Pay Commission Outlook

With DA reaching 63%, discussions on the 8th Central Pay Commission (CPC) have gained momentum.
It is expected that the DA as on 01.01.2026 may be merged with basic pay while determining the new pay structure.
Reports indicate that the fitment factor may be fixed at a minimum of 1.60, though the final decision will be taken by the Government.

Conclusion

The release of June 2026 CPI-IW data has removed all uncertainty regarding DA/DR revision. Central Government employees and pensioners can now expect a 3% increase in DA/DR, taking the rate from 60% to 63% with effect from July 2026, subject to formal Cabinet approval. This development is also significant in the context of the upcoming 8th Central Pay Commission recommendations.

Download Press-ReleaseCPIIW-June2026.pdf from official site

📢 DA/DR from July 2026 Confirmed at 63% for Central Government Employees and Pensioners