The wait is over. With the Labour Bureau's release of the All-India Consumer Price Index for Industrial Workers (AICPI-IW) for May 2026, the Dearness Allowance (DA) and Dearness Relief (DR) for July 2026 are now confirmed at 63% — a 3 percentage-point hike from the current 60%. The May index rose to 150.8 points, mathematically locking the figure: even the pending June 2026 reading can no longer change it.
This is good news for more than one crore Central Government employees and pensioners. Here is the official position, exactly what it adds to your salary, the arrears, and when the formal order lands.
What the May 2026 AICPIN number means
The AICPI-IW for May 2026 stood at 150.8, up 0.9 points from April. DA is not set by any single month — it is driven by the 12-month rolling average of the index. With May 2026 added, that average reaches about 148.08, which maps to a Dearness Allowance of 63% under the standard 7th CPC formula.
Here are the most recent readings feeding the July 2026 calculation:
| Month | AICPI-IW (2016=100) |
|---|---|
| May 2026 | 150.8 |
| April 2026 | 149.9 |
| March 2026 | 149.1 |
| February 2026 | 148.5 |
| January 2026 | 148.6 |
| December 2025 | 148.2 |
Per the official release, year-on-year retail inflation for May 2026 was 4.72% (against 2.93% a year earlier) — the rising trend that is pushing DA up. The group-wise breakdown shows where prices moved:
| Group | April 2026 | May 2026 |
|---|---|---|
| Food & Beverages | 153.1 | 154.9 |
| Pan, Supari, Tobacco & Intoxicants | 175.0 | 175.7 |
| Clothing & Footwear | 156.2 | 156.9 |
| Housing | 140.6 | 140.6 |
| Fuel & Light | 159.4 | 159.6 |
| Miscellaneous | 146.7 | 147.3 |
| General Index | 149.9 | 150.8 |
How the 63% is calculated
The 7th CPC DA formula on the 2016=100 base series is:
DA% = floor( ( 12-month average of AICPI-IW ÷ 90.77 − 1 ) × 100 )
Plugging in the current rolling average of ≈ 148.08:
( 148.08 ÷ 90.77 − 1 ) × 100 ≈ 63%
Because the formula always rounds down to a whole number, the result is a clean 63% — a 3-point jump from the current 60%. You can check the live projection any time on the DA Hike Calculator.
What a 3% DA hike adds to your salary
The extra DA is simply 3% of your basic pay. Here is the monthly gain across pay levels:
| Pay Level | Basic Pay | Extra DA at +3% |
|---|---|---|
| Level 1 | ₹18,000 | ₹540 |
| Level 6 | ₹35,400 | ₹1,062 |
| Level 7 | ₹44,900 | ₹1,347 |
| Level 10 | ₹56,100 | ₹1,683 |
| Level 13 | ₹1,18,500 | ₹3,555 |
And it does not stop at DA. Your Transport Allowance also rises, because DA on TA is paid at the same percentage — so a higher DA quietly lifts your TA line too, with no separate order. Pensioners get the identical hike as Dearness Relief (DR).
Is the 63% DA officially confirmed?
Yes — the 63% figure is now locked. The Labour Bureau's official press release on the May 2026 index (File No. 5/1/2021-CPI, dated 30 June 2026) confirms that the DA/DR for July 2026 works out to 63%. With ten of the twelve qualifying months already in, even an extreme swing in the pending June 2026 index cannot move the result off 63%.
There is one distinction worth understanding:
- The calculation is confirmed (63%). This comes straight from the AICPI-IW data and the standard 7th CPC formula — it is not going to change.
- The formal government order is still awaited. The Cabinet-approved Office Memorandum from the Department of Expenditure — the document that authorises payment — typically follows 2–3 months later, around September–October 2026.
So the rate is settled; only the paperwork that releases the money is pending.
Official notification — download it here
The 63% figure is backed by an official Government of India, Labour Bureau document. You can download the original press release directly:
- 📄 Download the official Labour Bureau press release (PDF) — Consumer Price Index for Industrial Workers, May 2026 · F.No. 5/1/2021-CPI, dated 30 June 2026 · Ministry of Labour & Employment (English & Hindi).
- 🔗 Source listing: Labour Bureau — CPI-IW Press Releases.
The formal DA notification — the Department of Expenditure Office Memorandum that actually orders the 63% payment — has not been issued yet. It is expected around September–October 2026 after Cabinet approval, and will be published here:
- 🔗 Department of Expenditure — Orders & Circulars — the official DA/DR Office Memorandum will appear here once issued.
We will update this article and link the Office Memorandum the moment it is released.
When will it be paid — and what about arrears?
DA is effective from 1 July 2026. Because the formal order usually comes a few months later, the gap months are paid as arrears along with the salary of the month the order is issued.
A quick arrears example: for a Level 7 basic of ₹44,900, three months of arrears (July–September) at +3% = 44,900 × 3% × 3 = ₹4,041, paid as a lump sum. Work out your own figure with the DA Arrears Calculator.
Source: Labour Bureau, Ministry of Labour & Employment — CPI-IW press release for May 2026 (File No. 5/1/2021-CPI, 30 June 2026). Always cross-check the final figure against the Department of Expenditure Office Memorandum when it is issued.
Work out your own numbers
- 💰 DA Hike Calculator — see your DA at 60% and the projected 63%.
- 📄 Salary Slip Generator — model your July 2026 payslip with the new DA.
- 🧮 DA Arrears Calculator — estimate your July-onwards arrears.
- 🚌 Transport Allowance Calculator — see how DA on TA lifts your TA too.
Quick summary
- AICPI-IW for May 2026: 150.8 (up 0.9 points), taking the 12-month average to ≈ 148.08.
- Confirmed DA/DR from 1 July 2026: 63% — a locked 3 percentage-point hike from 60% (Labour Bureau press release, 30 June 2026).
- Rupee impact: 3% of basic — roughly ₹540 (Level 1) to ₹3,555 (Level 13) extra per month, plus a higher TA.
- Formal order: the Cabinet-approved Office Memorandum is expected around September–October 2026, with arrears for the gap months.