Archive · 27 Jul 2026
Indian Government Employees Demand DA Hikes and Reforms
Indian government employees and pensioners are asking for higher Dearness Allowance (DA) and changes in how DA is calculated.
They want DA to be linked to inflation, merged with basic pay when it's more than 50%, and the minimum pay to be increased.
The government usually updates DA twice a year to help employees deal with rising living costs.
Different states have also increased DA for their employees.
The 8th Pay Commission is looking at these demands and will make final recommendations later.
Central government employees and pensioners received a 2% DA hike in April 2026, effective from January 2026.
Employee unions are demanding an inflation-linked wage model and a minimum pay hike to ₹65,000 to ₹69,000 per month.
Multiple unions have asked for an official announcement on DA merger with basic salary when it exceeds 50%.
The AIDEF has proposed changes in the DA calculation formula to better reflect inflation on essential items.
Various state governments have also increased DA for their employees, with hikes ranging from 2% to 5%.
- Who
- Central and state government employees, pensioners, and various employee unions
- What
- Demands for Dearness Allowance (DA) hikes, inflation-linked wage model, DA merger, and changes in DA calculation formula
- When
- Ongoing discussions and demands as of July 2026
- Where
- India
- Why
- To counter rising cost of living and inflation, and to improve compensation for government employees and pensioners
Employee Unions
Government
Inflation-Linked Wage Model
Employee Unions
Employee unions demand DA be updated to an inflation-linked wage model to better reflect rising living costs.
Government
The government has not officially announced any changes to the current DA calculation method.
DA Merger
Employee Unions
Employee unions are pushing for an official announcement on DA merger with basic salary when it exceeds 50%.
Government
The government has not made any official announcement regarding DA merger as of July 2026.
Minimum Pay Hike
Employee Unions
Employee unions suggest minimum pay be hiked to ₹65,000 to ₹69,000 per month from the current ₹18,000.
Government
The government has not responded to these demands with any official statements or actions.
- Current DA Rate (Central Government)
- 69% of basic pay
- Number of Beneficiaries
- Close to 1 crore (50 lakh employees, 65 lakh pensioners)
- DA Update Frequency
- Biannually (March and October announcements, effective January and July)
- 7th CPC DA Merger Threshold
- 50% of basic pay
- Current DA as % of Basic Pay
- 60%
- 8th CPC Memorandum Submission Deadline
- 15 June 2026
- 8th CPC Data Submission Deadline
- 31 July 2026