Centre's DA hike for employees yet to be announced, decision expected before Diwali

As the festival season begins, government employees and pensioners wait for an increase in dearness allowance (DA). This time, all eyes are on the DA hike applicable from July 2026. Dussehra has passed, but the government has not yet approved it. Everyone is therefore watching whether the decision will be taken at a Cabinet meeting before Diwali.

If the hike is 3%, employees will see a good increase in salary and will also receive the difference accumulated since July.

The Centre raises DA twice a year, in January and in July. Although the allowance is treated as effective from July, the announcement often comes late, in October or November, around the festivals.

That has happened again this time. At the Cabinet meeting on October 14, a bonus was approved for railway employees, but the DA issue was not taken up. On October 16, a bonus was approved for the other employees, but the DA file remained pending. A major meeting is now due on October 27 to review the working of ministries. Employees say the government should announce the DA hike separately before Diwali, without waiting for this meeting.

According to the AICPI (inflation index) figures, a 3% hike is more likely this time. At present, government employees get DA at 60% of their basic salary. A 3% rise would take it directly to 63%.

Looking at the pattern of past years, the July DA was announced on October 6 in 2025 and on October 21 in 2024. Everyone therefore expects the announcement to come before Diwali this time too.

Consider an example. Suppose your basic salary is Rs 18,000. At 60%, you now get DA of Rs 10,800. If DA goes to 63%, you will get Rs 11,340. That is a direct increase of Rs 540 a month, or an additional Rs 6,480 over a year. Those with a higher basic salary will gain more. Pensioners will get dearness relief (DR) raised in the same proportion.

Will arrears be paid from July? Yes, and this is the most important point. Even if the government announces it late, DA will apply from July 1, 2026. The difference for the four months of July, August, September and October will be credited to your account as arrears in one go.

Thus, both the salary increase and the arrears may come before Diwali. However, the final figure and the date of payment will be known only after the Finance Ministry issues the official GR. Overall, employees will have to wait a little longer. It is hoped that good news will come before Diwali.