DA Hike 2026: Central Cabinet May Approve 3% Increase for Employees, Pensioners Today

Employee organisations have expressed hope that the government will announce the long-pending revision following the Cabinet meeting.

Dr Manjeet Singh Patel, national president of the All India NPS Employees Federation, said the announcement of the DA hike (DA Hike 2026) had already been considerably delayed. He expressed hope that a decision could be taken at the Cabinet meeting scheduled for Wednesday, October 21.

C. Srikumar, secretary of the All India Defence Employees Federation, has also expressed hope that the DA hike will be announced after the meeting.

The delay in revising DA and DR has increased concerns among employees and pensioners. Against this backdrop, the Confederation of Central Government Employees and Workers organised demonstrations during lunch breaks at various workplaces on October 16. The organisation also wrote to the Cabinet Secretary, demanding an early announcement of DA, DR and bonus payments with effect from July 1.

The government has already announced Performance-Linked Bonus (PLB) and non-PLB bonuses for railway employees. However, a decision on the DA hike is still awaited.

According to current estimates, the government may increase dearness allowance by 3%. Central government employees are currently receiving DA at the rate of 60%. If the proposed increase is approved, the rate would rise to 63%. DA is calculated on the basis of average retail inflation figures for the preceding 12 months.

However, the final decision will become clear only after the government makes an official announcement. Until then, the proposed 3% increase remains an expectation rather than a confirmed revision.

The potential increase could also affect employees' monthly earnings. For an employee with a basic salary of Rs 44,900, the total salary under the current 60% DA rate has been stated to be Rs 71,840. If DA rises to 63%, the amount could increase to Rs 73,187.

Based on these figures, the employee could receive an additional benefit of approximately Rs 1,347 per month. Central government employees and pensioners are now awaiting the outcome of the October 21 Cabinet meeting for clarity on the long-pending DA and DR revision effective from July 1, 2026.