DA Hike News: How much will salaries increase after the 60% hike—could a major decision be announced on October 28?
DA Hike 2026: Central government employees and pensioners faced disappointment during Dussehra. However, the government might offer a major 'Diwali gift' in the form of an increase in the Dearness Allowance (DA) on October 28, ahead of Diwali. No decision regarding a DA hike was reached during the Union Cabinet meetings held on October 14 and 21. Consequently, lakhs of employees and pensioners are eagerly awaiting the next potential meeting scheduled for October 28.
Bonus Announced on October 16
On October 16, the government announced a non-performance-linked bonus for employees, but remained silent on the Dearness Allowance (DA) and Dearness Relief (DR). DA and DR are components of the basic salary provided to employees and pensioners to help them cope with the impact of rising inflation.
It was anticipated that the DA hike for July 2026 would be announced before Dussehra—consistent with the trend in previous years, where such announcements typically occurred in late September or early October.
Under the recommendations of the Seventh Pay Commission, the DA is updated twice a year based on the All India Consumer Price Index (AICPI) data. These updates are generally announced in March and October, with retrospective effect from January and July, respectively. Previously, in April, the government had increased the DA from 58% to 60%, effective from January 1, 2026.
With Diwali falling on November 8 this year, media reports suggest that the 'Diwali gift' could be approved during the meeting on October 28.
What has the trend been regarding the announcement of the July DA installment over the last five years? 2025: DA increased to 58% with a 3% hike on October 1
2024: 3% hike on October 16; DA reached 53%
2023: 4% increase on October 18; rates reached 46%
2022: DA increased to 38% with a 4% hike on September 28
2021: 3% hike on October 21; rates reached 31%
Organizations appeal to PM Modi
Dr. Manjit Singh Patel, National President of the All India NPS Employees Federation, states that no decision regarding the DA/DR (Dearness Allowance/Dearness Relief) hike has been taken in three consecutive Cabinet meetings. Typically, the increased DA and arrears for previous months are included in the October salary; however, due to the government's indifference, this has not happened this time.
He remarked sharply that the 3–4% DA hike—pending since July 2026—is the employees' right, not an act of charity. The lack of funds during the festive season has caused significant distress among the families of the employees.
The Federation has directly appealed to Prime Minister Narendra Modi to intervene immediately and grant approval for the file, so that employees may receive some financial relief this Diwali.
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