The Economic Times

DA hike after August inflation data: Will dearness allowance rise to 65%? How it may impact salaries of Level 1-10 central government employees

In August 2026, the Labour Bureau revealed a rise in the All India Consumer Price Index for Industrial Workers. This uptick translates into an estimated Dearness Allowance of 65%, signaling a welcome increase for many employees. As the central government regularly adjusts DA based on this data, employees may soon enjoy significant salary enhancements, with official announcements typically coinciding with festive periods.