Central Government Employees Await 3% DA Hike Ahead of Diwali

Central government employees and pensioners are eagerly awaiting an announcement on the Dearness Allowance (DA) and Dearness Relief (DR) revision due from July 2026. Expectations of a possible 3% increase have emerged ahead of the festive season. If the proposal is approved, the DA rate for eligible central government employees would rise from the current 60% to 63%. However, the proposed increase has not yet been officially confirmed by the government.

A 3% hike would mean an additional monthly benefit for employees. For instance, an employee with a basic salary of ₹18,000 would see their DA increase from ₹10,800 to ₹11,340 per month, resulting in an additional ₹540. If the revision takes effect from July 2026, eligible employees could also receive arrears for July, August and September. Employee associations are hoping for an announcement before Diwali. The government has often announced the July DA revision around late September or October in previous years, but the timing and details of this year's decision remain uncertain. The final hike percentage, effective date and arrears payment will be clear only after the Centre issues an official order.