Central government employees are waiting for a hike in Dearness Allowance (DA). If experts are to be believed, they may get their gift before Diwali. According to experts DA may increase by 3 percent. This means that government employees can see a good increase in their salary. If we look at the figures, the dearness allowance may increase from 60 percent to 63 percent. As Diwali falls on November 8 this year, employees and pensioners hope that some announcements can be made this festive season.
The Union Cabinet did not announce the pending amendments to DA and Dearness Relief (DR) in its meeting on October 14, leaving the next decision uncertain. The additional amount received by the employees will depend on their basic salary. With an increase of 3 percent, Rs. 18,000 per month to an employee drawing a basic salary of Rs. 540 more, while Rs. 56,100 to an employee drawing a basic salary of Rs. 1,683 will be found.
How much more can employees get paid?
DA is calculated as a percentage of basic pay. The current rate is 60% after the central government approved an increase of 2 percent to be implemented from January 1, 2026. If DA increases to 63% in the next revision, employees will get an additional 3% of their basic pay every month.
Source: These calculations are based on the current DA rate of 60% and a potential rate of 63%. The proposed increase is yet to be officially approved.
If this increase of 3 per cent is applied for the whole year, the employees on this basic pay level can get an additional amount of Rs 6,480 to Rs 20,196 per annum. However, due to some deductions, the actual increase in take-home pay may be less than this.
How much arrears can employees get?
The DA revision in July 2026 is expected to come into effect from July 1, regardless of whether it is formally announced. If the government retrospectively approves the implementation of this increment from that date, the employees may also get arrears of intervening months, as per the terms of the official order.
For example, if an employee’s basic salary is Rs. 35,400, then an increase of 3 percent means every month Rs. An additional amount of 1,062. Accordingly, for July, August and September, a total of Rs. 3,186 or a total of Rs. 4,248 can be arreared.
These figures are given as examples only. The actual due amount received will depend on the date from which it is applied, how much revised rate is sanctioned and for how many months the payment is made.
DA hike is different from Diwali bonus
The revision in DA is different from the festival bonus already announced by the government. The Central Government has sanctioned 30 days ad-hoc bonus for Group C and non-gazetted Group B eligible employees who are not covered under productivity-linked bonus schemes. Depending on the eligibility conditions, this includes a maximum of Rs. 6,908 can be paid. In addition, eligible railway employees will get 78 days of productivity-based bonus, with a maximum payout of Rs. is 17,951.
Unlike this lump sum payment, an increase in DA will increase the monthly salary. Employees may also get arrears if it is implemented retroactively. Pensioners will get this benefit through ‘Dearness Relief’.
The upcoming amendment in DA is also different from the 8th Pay Commission. As long as the Pay Commission is acting on its recommendations, the existing DA system can continue. Employees should not assume that an increase in DA means an immediate change in the entire pay structure.
At present, the 3 percent hike in DA is only an expectation and not a confirmed festival payment. To know about the revised rate, implementation date and amount due, the employees have to wait for the Cabinet decision and the subsequent official order.
