Today is Dussehra (Tuesday, October 20, 2026) and the central government is yet to announce the increase in Dearness Allowance (DA) for its employees, which will be implemented from July 1. Even in the previous two Cabinet meetings this month (which were held on Wednesday), no DA increase was announced. But employees have high hopes for this increase, as the government is going to hold its weekly cabinet meeting tomorrow (Wednesday, October 21, 2026).

Can DA addition be announced in this?

All India New Pension Scheme (AINPS) Chairman Manjit Singh Patel said in an ET report that the increase in DA may be announced in the cabinet meeting on Wednesday, as it has already been delayed a lot. Secretary of Civil Defense Employees Federation ‘All India Defense Employees Federation’ C. Sreekumar said that there is every possibility that the increase in DA will be announced after Wednesday’s meeting.

The current DA rate for central government employees is 60 percent. They will get this increase based on 12 months average retail inflation data (July 2025 – June 2026). At average inflation, DA is expected to increase by 3%, which could lead to the DA rate reaching 63%.

The government announces the DA hike twice a year, based on 12-month average retail inflation data. For increase in January, the average inflation from January to December of that year is taken into account. At the same time, for the DA increase in July, the average retail inflation from July last year to June of the current year is considered as the basis.

However, the government does not always announce DA hikes in January and July itself. The government often announces this around festivals like Holi, Dussehra or Diwali. But sometimes hikes are announced even after these festivals.

What happened in the cabinet meeting on October 14?

Many central government employees were hopeful that the central government would announce the DA hike in its cabinet meeting on October 14 (Wednesday). Although the government announced ‘Performance-Linked Bonus’ (PLB) for railway employees, it has not said anything about DA. On October 15, the Union government announced ‘Non-Performance Linked Bonus’ (Non-PLB) for employees, but did not include the decision to increase DA (Dearness Allowance).

Government employees protest against delay in DA hike

Confederation of Central Government Employees and Workers, a prominent employees’ body, protested during lunch-hour at workplaces on October 16 and DA demanded additional advertisement. In a letter sent to the Cabinet Secretary on October 14, the union said the protest is to demand the government to declare DA and ‘inflation hike’ for employees and pensioners with effect from July 1, 2026. Immediately announce the outstanding installment of relief (DR).

Besides, ad-hoc and PLB bonus should also be announced for FY 2025-26. Although the government announced the PLB the very next day, the hike in DA has not been announced yet. Employees are waiting for DA increase announcement, pensioners are also waiting for DR (Dearness Relief) increase. Pensioners get DR based on their basic pension.

What is the effect of DA increase on the salary of government employees?

With every increase in DA, the total salary of a central government employee increases. For example, at 60% DA rate, the total pay of a Level 7 employee excluding other allowances – Rs. 71,840 = Rs. 44,900 + Rs. 44,900 would be 60%.

But if the DA increases to 63 percent, it will increase to Rs 73,187, which means an increase of Rs 1,347 per month. However, this increase of 3% is only an estimate, as the actual increase will depend on the government’s announcement.