An important update has emerged regarding the dearness allowance (DA) hike for central government employees and pensioners. It is being reported that the dearness allowance will increase by 3 percent starting July 2026. If this increase is approved, the dearness allowance, which is currently 60 percent, could reach 63 percent. However, no official announcement has yet been made by the central government.

Will the DA hike be announced before Diwali?

This year, Diwali will be celebrated on November 8th. Therefore, central employee organizations are demanding the announcement of dearness allowance and dearness relief (DR) arrears before Diwali. On October 14th, the Confederation of Central Government Employees and Workers wrote a letter to the Cabinet Secretary calling for a protest to demand the pending DA/DR and Diwali bonus.

Meanwhile, it's reported that non-gazetted employees will receive a bonus equivalent to 30 days' salary, amounting to ₹6,908, and 78 days' productivity-linked bonus (PLB) for railway employees, which has over 1.14 million employees, amounting to ₹17,951. However, bonuses and DA increases are two different things.

How much will the salary increase if DA increases by 3%?

Dearness allowance is calculated on the basic salary. The increase in DA after it increases from 60% to 63% will be as follows.

18,000 Basic Salary: ₹540 per month, ₹6,480 per year

25,500 Basic Salary: ₹765 per month, ₹9,180 per year

35,400 Basic Salary: ₹1,062 per month, ₹12,744 per year

44,900 Basic Salary: ₹1,347 per month, ₹16,164 per year

56,100 Basic Salary: ₹1,683 per month, ₹20,196 per year

This calculation is based on a 3% increase. Actual salary changes may vary depending on applicable regulations and other salary factors.

What about arrears and the 8th Pay Commission? If the DA increase is implemented from July 1, 2026, eligible employees may receive arrears for previous months after approval. For example, an employee with a basic salary of ₹18,000 could receive arrears of ₹1,620 for the three months from July to September.

The Eighth Pay Commission is a separate issue from the DA increase. According to available information, the commission has been given 18 months to submit its report. Employees are eager to see whether the Union Cabinet meeting on October 21st will result in a decision on the DA increase.

PC: HINDUSTAN