DA to be hiked before Diwali! Speculation intensifies regarding a 3% increase and arrears.

Good news: Central government employees can expect a 3% hike in their Dearness Allowance (DA) before Diwali. Find out here how much your salary will increase if the DA rises from 60% to 63%, and how much you might receive in three months' worth of arrears.

There is renewed buzz regarding the Dearness Allowance (DA) for central government employees and pensioners. With the festive season underway, employees are hopeful that the government may announce a DA hike before Diwali. A 3% increase is anticipated; if this happens, the DA will rise from 60% to 63%. Additionally, employees may also receive arrears for the period starting from July.

However, the government has not yet officially approved this hike. No such announcement was made during the Union Cabinet meeting held on October 14. Consequently, employees are now awaiting the next development.

When will the DA hike be announced?

The central government typically revises the Dearness Allowance for its employees twice a year—once effective from January and again from July. The hike applicable from July is usually announced in September or October.

Employees had hoped for an announcement around Dussehra, but that did not materialize. Now, expectations are focused on an announcement before Diwali, which falls on November 8 this year. Organizations representing central government employees are also pushing for an increase in DA and Dearness Relief (DR) for pensioners. On October 16, one such employees' organization held nationwide demonstrations during the lunch hour, urging the government to promptly announce the pending installment.

How much will your salary increase if the DA is hiked by 3%?

If the government approves a 3% DA hike, the current rate will increase from 60% to 63%. This will increase the monthly Dearness Allowance (DA) received by employees, based on their basic salary. For instance, if an employee has a basic salary of ₹18,000, they currently receive ₹10,800 per month (calculated at 60% DA). Following the hike, at 63% DA, they will receive ₹11,340—an increase of ₹540 per month.

Will there be a three-month arrear payment?

When there is a delay in the announcement of a DA hike, employees typically expect to receive arrears. It is being suggested that this increase could be effective from July 1, 2026. If the government grants approval, the difference for the months of July, August, and September may be paid as arrears. For example, an employee with a basic salary of ₹18,000 would receive an extra ₹540 per month due to the 3% hike; over three months, this would amount to ₹1,620.

Will pensioners also benefit?

The benefit of a DA hike is not limited to serving central government employees. Central government pensioners also receive a Dearness Relief (DR). If the government approves the hike for the July 2026 installment, the DR for pensioners could also increase from 60% to 63%.