Centre Hikes DA By 3% To 63% For Govt Employees, Pensioners Ahead Of Diwali

New Delhi: The Centre has announced a 3 percentage-point hike in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, taking the rate from 60% to 63% of basic pay and pension, respectively. The decision covers the July 2026 revision and comes ahead of Diwali.

The revised rates will be effective from July 1, 2026, providing eligible employees and pensioners with an increase in their monthly payments. The announcement was made following the Union Cabinet meeting on Wednesday, October 28.

The DA hike is part of the Centre's periodic revisions aimed at compensating government employees for the impact of rising prices. Pensioners receive a corresponding increase through Dearness Relief.

Benefit From The DA Hike?

The additional amount employees will receive depends on their basic pay. With the DA rate increasing by three percentage points, employees will receive an additional 3% of their basic pay every month, compared with the previous rate.

For instance, an employee drawing a basic salary of Rs 18,000 will receive an additional Rs 540 per month. An employee with a basic pay of Rs 29,200 will receive an additional ₹876 per month.

The revised allowance will be calculated on the applicable basic pay, excluding other salary components. The actual increase in take-home pay may vary depending on individual salary structures and applicable deductions.

Pensioners will also benefit from the corresponding 3 percentage-point increase in Dearness Relief, with the additional amount determined by their eligible basic pension.

July 2026 DA Hike: Will Employees Get Arrears?

Since the revised DA rate is effective from July 1, 2026, eligible employees will be entitled to the difference between the old and revised rates for the period covered by the revision.

The arrears payable will depend on the implementation and payment schedule notified by the government. The revised rate will apply to the July-December 2026 revision cycle.

The DA and DR revisions are generally announced twice a year, with the effective dates falling on January 1 and July 1. However, the formal announcements can come after these dates, resulting in arrears for the intervening period.

Previous DA Revision Raised Rate To 60%

The previous DA revision was approved in April 2026, when the Centre increased the allowance by two percentage points, from 58% to 60% of basic pay, effective January 1, 2026. The corresponding Dearness Relief rate for pensioners was also raised.

With the latest three percentage-point increase, the DA rate for central government employees now stands at 63%.

The allowance is linked to inflation-related calculations based on the prescribed formula and the Consumer Price Index for Industrial Workers. The revisions are intended to help employees and pensioners manage the impact of changes in the cost of living.

The latest decision brings relief to central government employees and pensioners ahead of the festive season, with the financial benefit varying according to their basic pay or pension.

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