DA Hike Before Diwali? Here's How Much More Employees Could Get

Nearly 1.2 crore central government employees and pensioners are awaiting the July 2026 Dearness Allowance (DA) and Dearness Relief (DR) revision. A three-percentage-point increase, from 60% to 63%, is expected, but the Centre has not announced the rate or approval date.

With Diwali on November 8, employee organisations are pressing for the installment to be released before the festival.

The Confederation of Central Government Employees and Workers wrote to the Cabinet Secretary on October 14, calling for nationwide lunch-hour demonstrations on October 16. Its demands included immediate declaration of the DA and DR installment due from July 1, alongside festive bonuses.

The bonus announcements have since followed. Eligible central government employees will receive a 30-day ad-hoc bonus, capped at ₹6,908. More than 11.4 lakh railway employees will receive a separate 78-day productivity-linked bonus, with a maximum payout of ₹17,951.
DA, however, adds to monthly earnings rather than providing a one-time payment.

What A Three-Point Increase Would Mean

DA is calculated on basic pay. At 63%, an employee earning ₹18,000 in basic pay would receive ₹11,340 a month in DA, up from ₹10,800. That means an additional ₹540 monthly, or ₹6,480 over 12 months.

Those earning ₹25,500 in basic pay would get ₹765 more a month, totalling ₹9,180 annually. At ₹35,400 basic pay, the increase would be ₹1,062 monthly, or ₹12,744 a year.

For employees earning ₹44,900, the additional DA would be ₹1,347 a month and ₹16,164 annually. Those on ₹56,100 basic pay would receive ₹1,683 more each month, adding up to ₹20,196 over a year.

A revision effective from July 1 would also bring arrears. For an employee on ₹18,000 basic pay, a three-point increase would mean ₹1,620 for July through September alone. Pensioners would receive the corresponding DR increase on their basic pension.

The Centre normally revises DA twice annually, effective January 1 and July 1, using movements in the Consumer Price Index for Industrial Workers.
The pending installment is separate from the 8th Pay Commission's review. Constituted on November 3, 2025, the commission has 18 months to submit its report, placing its expected deadline around May 2027.

DA revisions can continue under the existing pay framework while the commission prepares its recommendations.

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