DA Increased in 4 States Ahead of Diwali; 9 Months' Arrears Also Provided

The central government recently increased the Dearness Allowance (DA) for central government employees from 60% to 63%. Following this, various state governments have also begun announcing hikes in the DA for their employees.

On October 28, the Union Cabinet approved a 3% increase in the Dearness Allowance (DA) for central government employees. Consequently, effective from July 1, 2024, the DA has risen from 60% to 63% of the basic pay.

This "Diwali gift" from the government is based on the formula recommended by the 7th Central Pay Commission. The calculation is applied only to the basic pay, not the total salary. The formula for calculating DA is: DA Amount = Basic Pay × DA Rate ÷ 100.

How much will the salary increase?

Under this formula, for a central government employee at Level 1 with a basic salary of ₹18,000, the DA will increase by ₹540 per month. Previously, at a rate of 60%, they received ₹10,800 per month; at the new rate of 63%, they will now receive ₹11,340 per month.

Similarly, for an employee at Level 5 with a basic salary of ₹29,200, the DA will increase by ₹876. At the existing rate of 60%, their DA was ₹17,520, which will now rise to ₹18,396 at the new rate of 63%. The arrears accumulated up to October will amount to ₹3,504. State Governments Also Offer a Gift

Following the Central Government's announcement of an increase in the Dearness Allowance (DA) for central government employees, four states—Tamil Nadu, Rajasthan, Chhattisgarh, and Madhya Pradesh—have also raised the DA for their respective state government employees and pensioners by the end of October.

Who Increased DA and by How Much?

Rajasthan and Tamil Nadu have announced a 3% hike in DA. With this, the Dearness Allowance for employees has risen from 60% to 63% of their basic salary. This increase will be effective from July 1, 2026, meaning employees will also receive arrears for the preceding months.

In Chhattisgarh, Chief Minister Vishnu Deo Sai has announced a 2% increase in DA as a Diwali gift. Consequently, the state's DA has risen from 58% to 60%. These new rates will come into effect in Chhattisgarh from November 1, 2026. This will provide direct financial benefits to approximately 3.85 lakh employees and 1.50 lakh pensioners in the state.

In Madhya Pradesh, the Mohan Yadav-led government has also announced a 2% hike in DA for its employees, bringing the state's DA from 58% to 60%. Employees will begin receiving the increased DA (at the 60% rate) starting with their November 2026 salary, with the cash payment scheduled for early December 2026.