DA Hike Ahead of Diwali: Centre Announces 3% DA Hike for Employees, DR Increase for Pensioners
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
The Centre has increased Dearness Allowance (DA) for central government employees by three percentage points to 63%, while pensioners will receive a corresponding increase in Dearness Relief (DR), effective from July 1, 2026. The decision, announced on October 28, will benefit employees and pensioners amid rising living costs ahead of Diwali.
The revised DA rate marks an increase from the existing 60% of basic pay. The corresponding DR rate for pensioners will also rise from 60% to 63% of their basic pension.
How the 3% DA Hike Will Affect Salaries
The increase will raise the monthly allowance for employees across pay levels, with the additional amount depending on their basic salary.
An employee with a basic pay of ₹18,000 will receive an additional ₹540 per month, while an employee drawing ₹29,200 will get ₹876 more each month. Those with higher basic salaries will receive proportionately larger increases.
The table below shows the revised DA amounts at the new rate of 63% and the additional monthly payment for different basic pay levels.
Basic Monthly Pay | DA at 60% | DA at 63% | Monthly Increase |
|---|---|---|---|
₹18,000 | ₹10,800 | ₹11,340 | ₹540 |
₹25,500 | ₹15,300 | ₹16,065 | ₹765 |
₹30,000 | ₹18,000 | ₹18,900 | ₹900 |
₹35,400 | ₹21,240 | ₹22,302 | ₹1,062 |
₹40,000 | ₹24,000 | ₹25,200 | ₹1,200 |
₹44,900 | ₹26,940 | ₹28,287 | ₹1,347 |
₹50,000 | ₹30,000 | ₹31,500 | ₹1,500 |
₹56,100 | ₹33,660 | ₹35,343 | ₹1,683 |
₹67,700 | ₹40,620 | ₹42,651 | ₹2,031 |
₹1,00,000 | ₹60,000 | ₹63,000 | ₹3,000 |
An employee with a basic monthly pay of ₹50,000 will receive ₹1,500 more in DA each month, while someone earning ₹1 lakh in basic pay will get an additional ₹3,000 per month.
Who Will Benefit From the DA Hike?
The revision covers eligible central government employees and pensioners. Dearness Allowance is paid to serving employees, while Dearness Relief is provided to pensioners to help offset the impact of inflation.
The revised rates apply retrospectively from July 1, 2026. Eligible beneficiaries will therefore be entitled to arrears for the period between the effective date and the implementation of the revised rates.
The additional amount payable will depend on the beneficiary's basic pay or pension and the period covered by the arrears.
Why the Centre Revises Dearness Allowance
The government generally revises DA and DR twice a year, with changes taking effect from January and July. The calculation is linked to movements in the All-India Consumer Price Index for Industrial Workers (AICPI-IW), which tracks changes in retail prices affecting industrial workers.
The revisions are intended to protect the purchasing power of government employees and pensioners as prices rise. The latest increase follows the January 2026 revision, when DA and DR were raised from 58% to 60%.
The July 2026 increase takes the rates to 63%, providing additional financial support to eligible employees and pensioners ahead of the festive season.
