DA Hike 2026: A major gift for 2.75 lakh employees ahead of Diwali; Dearness Allowance increased by 5%..

There is welcome news for government employees and pensioners ahead of Diwali. Following Punjab, Kerala, and Tripura, the Himachal Pradesh government has now announced a significant gift for its lakhs of employees and pensioners. Chief Minister Sukhvinder Singh Sukhu has declared a 5% hike in the Dearness Allowance (DA). This decision will benefit approximately 2.75 lakh employees and pensioners.

Additionally, Class IV employees will receive Rs 10,000 as pay-revision arrears. Let’s look at when this increased DA will be disbursed and what other announcements the government has made.

5% DA Hike: When will the increased salary be credited?

CM Sukhu stated that the DA has been increased by a total of 5%—comprising a 4% hike for the current year and 1% in outstanding arrears from the previous year. This move is expected to provide some financial relief to government employees and pensioners amidst rising inflation.

The official notification regarding the DA hike will be issued on November 1. It has been announced that the increased DA will be disbursed along with the salary for the month of October. This announcement comes just before Diwali, a time when household expenses typically rise.

Rs 10,000 in arrears for Class IV staff

Along with the DA hike, relief has also been announced for Class IV government employees, who will receive a one-time payment of Rs 10,000 as pay-revision arrears. This amount will be credited to the employees' bank accounts on November 1.

What is the state's debt burden? CM shares the figures.

Chief Minister Sukhu also responded to a claim made by the Leader of the Opposition, Jairam Thakur, who had suggested that the state’s debt burden stood at Rs 1.20 lakh crore. According to CM Sukhu, the state's total debt liability as of October 22, 2026, was Rs 99,461 crore. Sukhu stated that the current government has borrowed Rs 37,781 crore so far. According to him, this debt has been incurred in accordance with the rules set by the Central government. Some of these loans are even interest-free. Sukhu added that the government is taking steps to increase the state's revenue.

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