Several state governments have revised Dearness Allowance (DA) and Dearness Relief (DR) for government employees and pensioners in 2026. The changes vary from state to state, with some governments also announcing plans to clear pending arrears.

The latest developments include DA revisions in Punjab and Andhra Pradesh, while other states have also changed their allowance rates during the year. These decisions are separate from the DA revision applicable to central government employees.

Punjab DA Hike 2026

Punjab has announced an 8% increase in DA, taking the rate for state government employees from 42% to 50%. The revised rate is effective from September 1, 2026, according to the state Finance Department notification.

The revised DA will be paid with the September 2026 salary. However, employee representatives have raised questions about the treatment and timeline of some earlier pending DA instalments and arrears.

Andhra Pradesh DA Revision

Andhra Pradesh has approved two pending DA revisions for state government employees. One revision increases DA by 2.73 percentage points from July 1, 2024, taking the rate to 40.04%. Another 1.82 percentage-point revision takes the rate to 41.86% from January 1, 2025.

The revised DA is being paid with the September 2026 salary, payable in October. The state government has also specified separate schedules for payment of arrears related to the two revisions.

Maharashtra DA Arrears Update

In Maharashtra, the focus is on pending DA arrears linked to the fifth, sixth and seventh pay commissions. According to the report, the state has approved ₹800 crore towards these arrears.

The payment of arrears is separate from the regular DA revision. Employees should therefore check the applicable government order and their pay commission category before calculating the amount they may receive.

Other States Also Revise DA

The 2026 DA changes are not limited to Punjab, Andhra Pradesh and Maharashtra. The report also lists revisions in Arunachal Pradesh, Assam, Odisha, Uttar Pradesh, Tamil Nadu and Sikkim.

West Bengal has announced a 20 percentage-point increase in DA and DR, taking the rate from 18% to 38%. The revised rate is scheduled to take effect from October 2026.

Central Government DA Also Revised

For comparison, the Central Government increased DA for its employees from 58% to 60% with effect from January 1, 2026. The revision was based on the applicable inflation-linked mechanism and benefits central government employees and pensioners.

State government DA rates do not necessarily follow the central rate automatically. Each state decides its own DA revisions based on its government orders, pay structure and applicable policies.

For employees and pensioners, the key point is that DA Hike 2026 is being implemented differently across states. The effective date, revised percentage and arrears payment schedule can therefore differ significantly from one state to another.