No Decision on DA Hike Yesterday Either; Will Salaries Increase—Along with Arrears—by Diwali?

The wait for 12 million (1.2 crore) central government employees has been extended, as no official announcement was made by October 21. Consequently, there is now an expectation that salaries may increase before Diwali.

Central government employees and pensioners will have to wait a bit longer for an increase in their Dearness Allowance (DA) and Dearness Relief (DR). The central government has yet to announce this revision, which is set to be effective from July 1, 2026. A weekly meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi, took place yesterday, Wednesday, October 21, 2026.

During this meeting, the 12 million central government employees and pensioners had hoped for a major announcement regarding the DA. However, the government did not greenlight the installment of the Dearness Allowance (DA)—which has been pending since July 1, 2026—in this session either. This was the third consecutive Cabinet meeting this month in which no decision was reached regarding the DA. Previously, in the meeting held on October 14, a bonus for railway employees was approved, but no decision was made on the DA then, either. This has further increased the restlessness among central government employees, who are now pinning their hopes on a salary hike by Diwali.

When will the next meeting take place?

Since regular Union Cabinet meetings are held every Wednesday, employees—as well as staff organizations like AINPS and AIDEF—are now looking toward the next Cabinet meeting, which is expected to take place just before Diwali (November 8, 2026).

Based on the Consumer Price Index for Industrial Workers (CPI-IW) data, it is estimated that the DA could see a 3% increase, potentially raising the DA and DR from the current 60% to 63%. However, the government has not yet confirmed the revised rates. It was initially expected that an announcement would be made around Dussehra, providing relief ahead of the festive season. However, with no decision reached even by October 21, employees are now left wondering when this hike will be approved and when the actual payment will be made.

Arrears for 3 months will also be provided

Amidst this delay, there is a silver lining for employees and pensioners: regardless of when the government makes the announcement, the hike will be deemed effective from July 1, 2026. This means that employees will receive their arrears for the months of July, August, and September in a lump sum.