The Confederation of Central Government Employees and Workers has written a letter to the Ministry of Finance urging it to expedite the announcement of the next instalment of Dearness Allowance (DA) and Dearness Relief (DR) for employees and eligible pensioners, respectively, due from July 1, 2026.
In the letter to the Secretary, dated September 24, 2026, the employees’ body has requested the Department of Expenditure to speed up the process. Once the Consumer Price Index (CPI) data and the applicable formula determine the revised rates, the employees’ body has requested that the basic process be carried out at the earliest.
As per the letter, the current DA rates stand at 60 per cent from January 2026, compared with 46 per cent in July 2023, 50 per cent in January 2024, 53 per cent in July 2024, 55 per cent in January 2025, and 58 per cent in July 2025. It indicates the upward movement of DA/DR, which is a reflection of the increase in the cost of living and prices.
“We fully appreciate that the proposal for revision must undergo the prescribed examination and approval process. Nevertheless, once the relevant CPI data and the applicable formula enable the revised rate to be determined, the proposal may kindly be processed and placed before the competent authority at the earliest possible opportunity,” the letter states.
The letter places the concerns of the employees, including increased expenses during the period following July. Commitments including second-term educational expenses, household expenditure, travel, and the upcoming festive season might add to the financial burdens.
The employees’ body clarifies that the intention is not to draw any advance or additional benefit through the letter, but the timely completion of the formal process and announcement. It is to ensure that the dues from July 1 are reflected in the salary without delay. Also, the arrears arising should be regulated in the normal course.
DA and DR are generally revised in January and July to adjust for the cost of living as per rising inflation and are paid as salary and pension components, respectively.
The rates previously underwent a two per cent hike from 58 per cent in July 2025 to 60 per cent in January 2026. However, the rates for July 2026 are yet to be announced, which would be applicable from July 1, 2026.
As the All-India Consumer Price Index for Industrial Workers (AICPI-IW) data has estimated the DA/DR rates to be around 64 per cent, formal approval and announcement from the government are pending. Once announced, the arrears pertaining to the period from July to the date of implementation would also be payable.
The revised DA and DR would be disbursed after the Cabinet’s approval. The employees, in that case, have to wait for the benefits, and the expenses mentioned in the letter may likely add to their concerns.
