DA Hike: Central employees bat before Diwali! Do you know how much your October salary will increase?
DA Hike: Central employees bat before Diwali! Do you know how much your October salary will increase?
The Central Government’s (DA) has announced a hike in Dearness Allowance (DA) and Dearness (DR) due from July 2026 to around 1.2 crore central government employees and pensioners. This time, there is a possibility of a 3 percent increase in dearness allowance, which will increase the DA from 60% to 63%. The date of the announcement and approval of the central government is yet to be fixed.
Diwali is on November 8. In view of this, the employees’ unions are demanding the release of this installment before Diwali. On October 14, the Confederation of Central Government Employees and Workers had also written to the Cabinet Secretary, calling for a nationwide protest on October 16, including the demand for DA/DR and Diwali bonus pending from July 1.
The government has announced a 30-day ad-hawk bonus (maximum ₹6,908) and a 78-day PLB bonus (maximum ₹17,951) for railway employees over 11.4 lakh railway employees. But while the bonus is available in lump sum, the DA hike leads to a permanent increase in the salary and pension for every month.
How much will the salary increase by 3% DA Hike?
Dearness Allowance is calculated on the basis of basic pay. If the DA increases from 60% to 63%, then the complete math of the profit that is happening every month and annually on different basic pays is as follows:
🎓 Explore Jobs by Qualification
Explore the latest job opportunities in J&K and across India based on your educational qualification.
₹18,000 Salary hike on basic pay
- Current DA (60%): ₹10,800 per month
- New DA (63%): ₹11,340 per month
- Monthly Benefits: ₹540 per month
- Annual gain: ₹6,480 per annum
₹25,500 Salary hike on basic pay
Monthly Benefits: ₹765 per month
Annual Benefit: ₹9,180 per annum
Salary hike on ₹35,400 basic pay
Monthly Benefits: ₹1,062 per month
Annual gain: ₹12,744 per annum
₹44,900 Salary Hike on Basic Pay
Monthly Benefits: ₹1,347 per month
Annual gain: ₹16,164 per annum
₹56,100 Salary hike on basic pay
Monthly Benefits: ₹1,683 per month
Annual gain: ₹20,196 per annum
Arrears and Status of 8th Pay Commission
Due to this increase coming into effect from July 1, employees will also get arrears i.e. past dues. For example, an employee with a basic pay will get a total of ₹1,620 arrears for the months of July, August and September only. In the same proportion, pensioners will also be given DR arrears.
DA/DR increases 2 times in a year
The central government revises the DA/DR twice a year (January 1 and July 1) on the basis of the Consumer Price Index (CPI-IW) for industrial workers. This pending DA revision is completely different from the 8th Pay Commission. The 8th Pay Commission, constituted on November 3, 2025, has been given 18 months to submit its report, the deadline of which is around May 2027.
The Union Cabinet is scheduled to meet on October 21. The meeting is likely to take a major decision on the DA and DR revision of July 2026. However, until the official seal is given by the government, the employees and pensioners will have to wait for the final announcement.