Rajouri/Arsalan Bhat/
Central Government employees and pensioners may see another rise in their Dearness Allowance (DA) and Dearness Relief (DR) from July 2026, as the latest inflation data released by the Labour Bureau indicates a gradual upward trend.
According to the data released on 27 February 2026, the All-India Consumer Price Index for Industrial Workers (CPI-IW) rose by 0.4 points in January 2026, reaching 148.6. This index forms the basis for calculating DA/DR for Central Government employees and pensioners.
With the January index included in the calculation cycle for the July 2026 revision, the projected DA/DR has already reached about 60.85% in the first month of calculation. The CPI-IW figures for the next five months (February to June 2026) will ultimately determine the final DA/DR rate to be implemented from July 2026.
Experts estimate that if the CPI-IW remains unchanged during the remaining months the DA/DR could rise to around 63% from July 2026. However, the final percentage will depend on inflation trends in the coming months.
Meanwhile, the DA/DR effective from January 2026 has been finalized at 60%, marking a 2% increase over the previous rate. As per the usual procedure, the proposal is expected to receive approval from the Union Cabinet shortly.
Once approved, the Department of Expenditure under the Ministry of Finance will issue the official Office Memorandum (OM) announcing the revised DA/DR rates.
Central Government employees and pensioners across the country are now keenly awaiting the Cabinet’s formal approval, which is expected in the coming days.
Author: therajouritimes
Lakkar Mandi Janipur Jammu
