DA Hike 2026: Govt Approves 3% Dearness Allowance Hike for Central Government Employees Ahead of Diwali
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday, October 28, approved a 3% increase in dearness allowance (DA) for central government employees and dearness relief (DR) for pensioners. The revised allowance will be effective from July 1, 2026, providing additional financial support to more than 1.16 crore employees and pensioners ahead of Diwali.
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday, October 28, approved a 3% increase in dearness allowance (DA) for central government employees and dearness relief (DR) for pensioners. The revised allowance will be effective from July 1, 2026, providing additional financial support to more than 1.16 crore employees and pensioners ahead of Diwali.
The decision is aimed at helping government employees and pensioners manage rising living costs amid inflation. The increase will raise the DA and DR rates by three percentage points from their existing levels.
DA Hike Effective From July 1, 2026
The latest revision follows the government's established practice of reviewing dearness allowance and dearness relief twice a year, generally in January and July. Although the approval came on October 28, the revised rates will apply retrospectively from July 1, 2026.
Central government employees will receive the increased DA as part of their salary, while eligible pensioners will benefit from the corresponding increase in dearness relief.
The revised allowance is expected to result in additional payments for the period between July and the implementation of the decision, subject to the government's payment arrangements.
What Is Dearness Allowance?
Dearness allowance is a component of the salary paid to central government employees to help them cope with inflation and changes in the cost of living. Dearness relief serves a similar purpose for pensioners.
The government periodically revises these payments based on inflation-related factors and the applicable calculation framework. The revisions are intended to protect the purchasing power of employees and pensioners as prices change.
Who Will Benefit From the DA Hike?
The 3% increase will benefit eligible central government employees and pensioners covered by the revision. The combined number of beneficiaries is estimated at more than 1.16 crore.
The actual increase in monthly salary or pension will depend on an individual's basic pay or basic pension and the applicable allowance rate. Employees and pensioners will also be eligible for the revised amount from July 1, 2026, in accordance with the government's implementation and arrears payment rules.
The latest decision comes ahead of Diwali, a period when additional payments can provide financial support to households facing increased festive-season expenses.
(The above story first appeared on LatestLY on Oct 28, 2026 03:45 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).