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Jobs & Career
3% Dearness Allowance Hike 2026 to Boost Government Salaries Ahead of Diwali
✍️ Jagran Josh
🗓 22 Oct 2026, 07:02 AM
👁 12
The Indian government has announced a 3% increase in Dearness Allowance for 2026, effective before Diwali, which will raise the monthly salaries of public sector employees.
The Ministry of Finance has approved a 3% hike in Dearness Allowance (DA) for the fiscal year 2026, set to take effect before the Diwali celebrations. DA, a cost‑of‑living adjustment, is added to the basic salary of government employees and public sector undertakings. The increase is expected to raise the monthly DA component by roughly ₹1,500 for a staff member with a basic pay of ₹50,000.
The decision comes as part of the annual salary revision cycle and aims to cushion employees against inflationary pressures. While the hike will benefit all central government workers, it also applies to employees of state public sector units and certain government‑owned corporations.
The new DA rate will be reflected in the next payroll cycle, with employees seeing the adjustment in their pay slips from the upcoming month. The government has urged all departments to update their payroll systems accordingly to ensure a smooth transition.
The decision comes as part of the annual salary revision cycle and aims to cushion employees against inflationary pressures. While the hike will benefit all central government workers, it also applies to employees of state public sector units and certain government‑owned corporations.
The new DA rate will be reflected in the next payroll cycle, with employees seeing the adjustment in their pay slips from the upcoming month. The government has urged all departments to update their payroll systems accordingly to ensure a smooth transition.