Important news has arrived for central government employees. Employees are currently eagerly awaiting two major updates: one is the increase in dearness allowance (DA) effective July 2026, and the other is the Eighth Pay Commission. According to current data and various reports, a DA increase of 3 to 4 percent is expected for July. However, there has been no official announcement from the central government regarding this.

2% DA Hike in January
In the first half of 2026, the central government increased the DA of employees by 2% to 60%. This increase took effect on January 1, 2026. Now, another DA hike is expected for the July-December period. Therefore, some reports estimate that it could reach 63 or 64%.

AICPI-IW determines DA hike.
Dearness allowance for industrial workers is calculated based on the AICPI-IW index. Based on inflation trends in available data, a DA increase of 3 to 4 percent is likely for July.

How much will the salary increase if DA is 64%?

If the DA increases from 60 to 64 percent, the DA for employees with a basic salary of Rs 18,000 will increase from Rs 10,800 to Rs 11,520. This means an increase of Rs 720 per month. For employees with a basic salary of Rs 25,500, the DA will increase from Rs 15,300 to Rs 16,320, while for employees with a basic salary of Rs 35,400, it will increase from Rs 21,240 to Rs 22,656.

There are also high expectations from the Eighth Pay Commission.
Discussions are underway regarding the Eighth Pay Commission, and there are demands to increase the fitment factor. Currently, the fitment factor is 2.57, and there are demands to increase it to 3.83. However, the final decision will be made by the government.

The Eighth Pay Commission was constituted on November 3, 2025, and has been given 18 months to submit its report. Therefore, the report is expected to be submitted by May 2027. After that, the actual increase in salaries and pensions for central government employees will become clear based on the government's decision.

PC: INDIA TV HINDI