DA Hike: Cabinet Raises Dearness Allowance By 3% To 63% From July 1; 48.54 Lakh Employees, 68.71 Lakh Pensioners To Benefit
The Union Cabinet has approved a 3 percentage point hike in dearness allowance and dearness relief, taking it to 63% of basic pay from July 1, 2026.
Photo: Pinakpani / CC BY-SA 4.0, via Wikimedia Commons
Pune, 29th October 2026: Central government employees and pensioners have something extra to look forward to this Diwali. The Union Cabinet on Wednesday, October 28, raised Dearness Allowance and Dearness Relief by 3 percentage points, from 60% to 63% of basic pay and pension, with effect from July 1, 2026.
About 48.54 lakh employees and 68.71 lakh pensioners will benefit. The government puts the annual cost at ₹10,016.10 crore.
How much more you’ll get
DA is calculated on basic pay, so the extra amount depends on your pay level. Someone with a basic of ₹18,000 gets ₹540 more a month. At ₹29,200, it’s ₹876 more, and at ₹50,000, ₹1,500. Pensioners get a similar increase in Dearness Relief on their basic pension.
Arrears
Since the hike applies from July 1, there are arrears for July through October. These are normally paid with the salary or pension once departments process the order. For a basic pay of ₹18,000, four months of arrears add up to about ₹2,160.
How DA is worked out
DA is revised twice a year, in January and July, using a formula based on the 7th Central Pay Commission’s recommendations. It’s tied to the All-India Consumer Price Index for Industrial Workers so that salaries keep pace with prices. The last revision, announced in April, raised DA from 58% to 60% from January 1, 2026.
State employees
This hike is only for central government staff and pensioners. In Pune, that includes people working in central offices, defence establishments, the railways and postal services. Maharashtra government employees will have to wait for the state’s own announcement.
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Frequently Asked Questions
What is the new DA rate from July 2026?
DA has been raised to 63% of basic pay from July 1, 2026, up from 60%.
Will employees get DA arrears?
Yes. Since the hike is effective from July 1, 2026, employees and pensioners will receive arrears for the months since then.
Does this DA hike apply to Maharashtra state employees?
No. This hike is for central government employees and pensioners. Maharashtra announces DA for its staff separately.
