DA Hike Update: No Decision Yet; Will Salary, Arrears Increase THIS Diwali? Read

DA Hike Update: Central government employees and pensioners are still waiting for the Dearness Allowance hike announcement. The Union Cabinet might approve a 3 percent DA increase in its next meeting before Diwali

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Dearness allowance for employees and pensioners

Central government employees and pensioners must wait a little longer for their Dearness Allowance (DA) and Dearness Relief (DR) hikes. The central government has not yet announced this revision, which takes effect from July 1, 2026. Prime Minister Narendra Modi chaired the weekly Union Cabinet meeting yesterday, October 21, 2026 (Wednesday).

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Big DA announcement for employees and pensioners

Over 1.20 crore central government employees and pensioners expected a major DA announcement during this meeting. However, the government did not approve the pending DA installment from July 1, 2026. The cabinet held its third consecutive meeting this month without making any decision on the DA hike.

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Bonus approved for railway employees

The cabinet approved the bonus for railway employees during its earlier meeting on October 14, but it skipped the DA decision. This delay has increased the anxiety of central government employees. They are now desperately hoping for a salary hike this Diwali.

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When will the next meeting happen?

The Union Cabinet usually holds its general meeting every Wednesday. Employees and major staff unions like AINPS and AIDEF are now eagerly waiting for the next cabinet meeting. The government has scheduled this crucial meeting just before Diwali on November 8, 2026.

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Retail inflation for industrial workers

The retail inflation data for industrial workers (CPI-IW) strongly indicates a 3 percent DA hike this time. This expected increase will push the current DA and DR from 60 percent to 63 percent. The government, however, has not confirmed the revised rates yet.

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Relief before the festive season

Employees initially expected the government to announce the hike around Dussehra for some festive relief. The cabinet took no decision until October 21, leaving workers wondering about the final approval and payment dates.

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Three months of pending arrears will be paid

Employees and pensioners have only one relief amid this delay. The government will implement the hike from July 1, 2026, regardless of the announcement date. The authorities will pay the pending arrears for July, August, and September together.