Central Government Yet to Announce 3% DA Hike for 1.2 Crore Employees and Pensioners

The Centre has not issued an announcement on the next dearness allowance (DA) and dearness relief (DR) revision for government employees and pensioners, as per news report.  

The revision is due from 1 July 2026, but the rates remain unchanged at 60%. Nearly 1.2 crore employees and pensioners are awaiting the decision. 

When Will the Centre Announce the DA Hike? 

The next revision was expected around Dussehra, with 21 October considered a possible announcement date. However, the Centre did not issue an announcement on that day. 

The expected increase is three percentage points, which would take DA and DR from 60% to 63%. The government has not confirmed the revised rates or given a date for the announcement. 

With Diwali falling on 8 November, employees and pensioners are waiting to see whether the decision will come before the festival. There is no official confirmation that the increase will be announced by then. 

Details of the Previous DA Revision 

The Union Cabinet approved the previous DA and DR hike on 18 April 2026. The increase was two percentage points, taking the rates from 58% to 60%, effective from 1 January 2026. 

According to the government's announcement, the revision covered around 50.46 lakh central government employees and 68.27 lakh pensioners. The estimated annual financial impact was ₹6,791.24 crore. 

The Centre generally revises DA and DR twice a year, with the changes taking effect from 1 January and 1 July. However, announcements may come after the effective dates. The July 2026 instalment has now been pending for more than three months. 

Employee Organisations Seek an Early Announcement 

The Confederation of Central Government Employees and Workers had asked the Finance Ministry to release the pending instalment. Its request referred to the inflation data used to determine the allowance. 

The government has not stated why the announcement is delayed. 

What Happens Next? 

In 2025, the July DA revision was followed by a Department of Expenditure order dated 6 October. This does not establish when the 2026 revision will be approved. 

Until the Centre issues its decision and the required orders, DA and DR will remain at 60%. The payment schedule for the revised allowance and any arrears has also not been announced. 

Read More: RBI Restricts Puducherry Co-Operative Urban Bank for 6 Months, Caps Withdrawals at ₹5,000! 

Conclusion  

The proposed 3% DA and DR hike remains pending, with no official announcement from the Centre. Employees and pensioners are awaiting confirmation of the revised rates and arrears. 

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