Central staff's DA hike not announced at October 21 Cabinet meet; decision may come next week

Central government employees and pensioners are waiting for the next increase in dearness allowance (DA). Everyone had expected an official announcement at the Union Cabinet meeting held on October 21. No decision was taken at that meeting, adding to the employees' anxiety.

Employees and pensioners are now looking to a possible Cabinet meeting next week. However, no firm date for the announcement has emerged so far.

The Centre revises dearness allowance and dearness relief (DR) twice a year. The increases are deemed to take effect from January 1 and July 1 respectively. The January increase is usually announced in March or April, while the July increase is often announced in September or October. This time too, an announcement in October was expected, but with no decision on October 21, employees must wait a little longer.

It is not necessary for a DA increase to be announced at a Cabinet meeting every time. The Finance Ministry can also make an official announcement directly by issuing a circular. Even so, in recent years the increase has been approved at a Cabinet meeting.

In April 2026, the Centre approved a 2 per cent increase in dearness allowance for central employees and pensioners. That decision raised the DA rate from 58 per cent to 60 per cent. The increase was made effective from January 1, 2026.

The dates on which the July DA increase was announced in previous years were: October 1 in 2025, October 16 in 2024, October 18 in 2023, September 28 in 2022 and October 21 in 2021. The announcement has thus generally come in late September or October. Going by these figures, a decision is expected soon this time as well.

A DA increase affects the incomes of central employees and pensioners, so lakhs of employees and pensioners are watching for the decision. With no decision on October 21, the possible Cabinet meeting next week could be important. However, there is no official information yet that the meeting will discuss the DA increase.

The administration has made clear that the percentage and date of the increase should not be treated as certain until the Centre makes an official announcement.