DA Hike 2026: Just before Diwali, there is significant and welcome news for central government employees and pensioners. The central government has officially approved a 3% increase in the Dearness Allowance (DA) and Dearness Relief (DR).

On Wednesday, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved development and welfare packages totaling Rs 29,267 crore. This decision will lead to a substantial and direct increase in the salaries of employees and the pensions of retirees.

Dearness Allowance Reaches 63% Following 3% Hike
The government has raised the DA by 3%, bringing it from 60% to 63% under the 7th Pay Commission framework. These revised rates will be effective from July 1, 2026.

Additionally, for those covered under the 6th Pay Commission, the DA has increased from 262% to 269% (+7%), while for those under the 5th Pay Commission, it has risen from 483% to 497% (+14%). The government will incur an expenditure of Rs 10,016 crore for this overall DA hike.

This government initiative will directly benefit approximately 4.9 million (49 lakh) central government employees and over 6.8 million (68 lakh) pensioners. The entire increase is based on the formula established under the recommendations of the 7th Pay Commission.

Over 10 Million (1 Crore) People to Benefit
Dearness Allowance (DA) is an additional payment provided to government employees and pensioners to help them cope with the impact of rising inflation and to maintain their standard of living.

Decision Welcomed by Organization
Following this announcement, Dr. Manjeet Singh Patel, National President of the All India NPS Employees Federation, welcomed the government's move and shared his perspective. He stated,

"The government has caused a significant delay in releasing the DA this time, even though Diwali is just around the corner and employees have been eagerly awaiting it for a long time. He has also strongly urged the government to ensure a favorable fitment factor for employees in the upcoming Eighth Pay Commission and to merge the DA into the basic salary, so that employees may derive a lasting and substantial benefit from it."

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