New Delhi: Lakhs of Central government employees and pensioners are eagerly awaiting the formal announcement of their Dearness Allowance (DA) and Dearness Relief (DR) hike, which has been pending since July 1, 2026. After no decisions were made regarding the allowance in the previous two cabinet meetings, expectations are high that the government will officially announce the much-awaited increase during the weekly cabinet meeting scheduled for Wednesday, October 21.
Currently, Central government employees receive a DA of 60 percent. Based on the 12-month average of retail inflation data from July 2025 to June 2026, an increment of 3 percent is widely anticipated. If approved, this will push the total Dearness Allowance to 63 percent, providing a significant boost to their monthly salaries.
The delay in the announcement has recently caused unrest among government staff. While the Centre approved Performance-Linked Bonuses (PLB) for railway employees on October 14 and non-PLB bonuses the following day, the silence on the DA hike triggered frustration. On October 16, the Confederation of Central Government Employees and Workers staged a lunch-hour protest across workplaces, demanding the immediate release of the pending DA and DR installments.
However, union leaders are now optimistic about a swift resolution. Manjit Singh Patel, President of the All India New Pension Scheme (AINPS), indicated to the media that the announcement is highly likely to be made in the upcoming Wednesday cabinet meeting, noting that the decision is already long overdue. Echoing this sentiment, C. Srikumar, Secretary of the All India Defence Employees Federation, stated that there is a strong possibility of the DA increase being cleared following Wednesday’s deliberations.
A 3 percent hike would result in a noticeable bump in monthly take-home pay. For instance, a Level 7 employee with a basic salary of ₹44,900 currently receives ₹26,940 as DA at the 60 percent rate. With a revision to 63 percent, the DA component would rise to ₹28,287, resulting in a direct salary increase of ₹1,347 per month. Pensioners are also poised to benefit similarly from the corresponding hike in Dearness Relief, which is calculated based on their basic pension.