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DA Hike 2026: Central government employees have received good news today. This Diwali has brought a welcome financial boost for central government employees and pensioners!
The Union Cabinet has approved a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR), raising the rate from 60% to 63% of basic pay and pension.
Announced by Union Minister Ashwini Vaishnaw ahead of the festive season, the revision will be effective retrospectively from July 1, 2026.
This also comes with good news for your bank accounts. The arrears will be credited soon. It means eligible beneficiaries can also expect arrears for the preceding months. With a financial outlay of approximately ₹10,016 crore, the decision aims to provide relief against inflation and rising living costs.
DA Hike 2026: Here Is Everything You Should Know
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Key Highlights
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Details
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New DA/DR Rate
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Increased by 3 percentage points, from 60% to 63% of basic pay or pension.
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Effective Date
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July 1, 2026, retrospectively.
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Arrears Payment
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Eligible employees and pensioners will receive arrears for the period covered by the revised rates.
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Financial Impact
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Approximately ₹10,016 crore for the national exchequer.
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Beneficiaries
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More than 1.16 crore central government employees and pensioners.
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Calculation Basis
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The established DA calculation framework associated with the 7th Central Pay Commission and inflation-linked adjustments.
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Festive Relief
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The hike was announced ahead of Diwali to provide additional financial support to eligible beneficiaries.
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