The Economic Times

Will DA hike for central government employees be 3% in June 2026? Here's what latest consumer inflation data suggests

The April 2026 AICPI-IW data has raised expectations of a possible 3% dearness allowance (DA) hike for central government employees, though the final rate will depend on May and June inflation data. The 12-month average AICPI-IW from May 2025 to April 2026 stands at 147.51, translating to an estimated DA of 62.51%, which could be rounded to 63%. If approved, a 3% DA hike would increase the salary of a Level 5 employee by about Rs 876 per month.