An important update has emerged regarding the increase in dearness allowance (DA) and dearness relief (DR) for central government employees and pensioners. The potential increase in dearness allowance, which will take effect from July 2026, has not yet been officially announced. This has kept the country's 12 million central government employees and pensioners closely awaiting the government's decision. There is debate about whether the increase will be approved before Diwali.

A 3% increase in DA
is currently expected. However, the central government has not yet made an official announcement regarding this. The current dearness allowance rate is 60%. If the proposed 3% increase is approved, it could reach 63%. Central government employees and pensioners could benefit from this through dearness relief (DR).

Will there be a decision before Diwali?
Employees were hoping that the dearness allowance hike would be announced around Dussehra. However, the official decision had not been announced until October 21st. Now, all eyes are on whether the government will make an announcement before Diwali, which falls on November 8th. However, the government has not announced the exact date of the decision. Earlier, in April 2026, the Union Cabinet had approved a 2% increase in dearness allowance. This increased the DA rate from 58% to 60%. This increase was considered effective from January 1st, 2026.

How much can the salary increase be?

Suppose an employee's basic salary is ₹30,000. At the current 60% DA rate, they receive ₹18,000 in dearness allowance. When the rate reaches 63%, this allowance will increase to ₹18,900, meaning a monthly increase of ₹900. Similarly, an employee with a basic salary of ₹50,000 currently receives ₹30,000 in DA. After the potential increase, this could become ₹31,500, meaning an additional ₹1,500 per month.

When will the arrears be paid?
Following the approval of the increase effective July 2026, eligible employees and pensioners are expected to receive arrears for the applicable period. However, there is currently no official information available regarding when and how the arrears will be paid.

PC: AAJ TAK