Archive · 31 Jul 2026
Second Dearness Allowance Hike Expected for Diwali 2026
Dearness Allowance is a part of a government worker’s salary that helps them keep up with rising prices.
In April 2026, the Indian government raised this allowance to 60% of the basic pay, starting on 1 January.
About 1 crore people, including workers and retirees, will get more money.
Because prices are still going up, experts think there might be another increase later in the year, maybe around Diwali in November.
This would give workers a bigger boost to help them afford everyday things.
Government raised DA to 60% of basic salary effective 1 January 2026.
Over 1 crore beneficiaries, including 50 lakh employees and 65 lakh pensioners, received the hike.
AICPI-IW data suggests a 3‑4% DA increase could be announced in July or October/November 2026.
Past pattern shows DA hikes around Diwali, with a 3% increase in October 2025.
DA hikes are calculated from 12‑month AICPI averages per 7th Pay Commission guidelines.
- Who
- Central government employees and pensioners in India
- What
- Increase in Dearness Allowance (DA) to 60% of basic salary
- When
- Announced April 2026, effective 1 January 2026; potential second hike July/October/November 2026
- Where
- India
- Why
- To offset rising inflation and cost of living for public sector workers
- DA percentage
- 60%
- Effective date
- 1 January 2026
- Beneficiaries
- Over 1 crore
- Retail inflation (June 2026)
- 4.38%
- AICPI-IW March 2026
- 149.1