Central Government Employees May Get 3% DA Hike After October 28 Cabinet Meeting

Central government employees and pensioners are awaiting a decision on a possible Dearness Allowance (DA) hike ahead of the festive season. According to reports, the Union Cabinet may consider a 3% increase at its meeting scheduled for October 28. If approved, the DA rate would rise from the existing 60% to 63%. The proposed increase is expected to be based on the average Consumer Price Index figures recorded between July 2025 and June 2026. However, the government has not yet issued an official confirmation.

Employees had reportedly expected an announcement earlier in October, but the government announced bonuses for railway and other central government employees around the Dussehra and Diwali period without announcing a DA revision. If the proposed hike receives Cabinet approval, it may be made effective from July 2026, with arrears for July through October potentially paid along with November salaries. For example, an employee with a basic salary of ₹47,600 could receive approximately ₹1,428 more per month through the 3% DA increase. The transport allowance may also rise for eligible employees in major cities. These figures are indicative, and the final benefits and payment schedule will depend on the government’s official decision.