DA Hike 2026 : Government employees and pensioners have received welcome news ahead of Diwali. Following the Central Government, four states have also announced increases in Dearness Allowance (DA). The governments of Rajasthan, Tamil Nadu, Chhattisgarh and Madhya Pradesh have provided financial relief to their employees ahead of the festive season. While some states have increased DA by 3%, others have announced a 2% hike. The decision will increase the monthly income of lakhs of employees and pensioners. In some states, the revised rates are effective from July 1, 2026, making employees eligible for arrears for previous months as well.

Central Government Also Increases Dearness Allowance
On October 28, the Union Cabinet approved a 3% increase in DA for Central Government employees. Following this decision, the Dearness Allowance has increased from 60% to 63% of basic pay. The revised rates are effective from July 1, 2026. The calculation is based on the formula prescribed under the Seventh Central Pay Commission. Only basic pay is considered for calculating DA, rather than the employee’s entire salary. With this increase, Central Government employees will receive a higher DA amount every month.

DA Increase Calculated According To Basic Salary
The impact of the revised rates will vary depending on employees’ basic salaries. For example, a Level-1 employee with a basic salary of ₹18,000 was previously receiving ₹10,800 as DA. At the revised rate of 63%, this amount will increase to ₹11,340. This means an additional benefit of ₹540 every month. Similarly, for a Level-5 employee with a basic salary of ₹29,200, DA will increase from ₹17,520 to ₹18,396. This will raise the employee’s monthly income by ₹876.

Rajasthan And Tamil Nadu Announce 3% DA Hike
The Rajasthan and Tamil Nadu governments have also increased DA for their employees by 3%. Following the revision, DA in both states has increased from 60% to 63%. The hike is considered effective from July 1, 2026. This means employees may also receive arrears for the period between July and the implementation of the revised payments. The decision is expected to provide financial relief to state government employees and pensioners amid rising prices.

Chhattisgarh And Madhya Pradesh Also Raise DA
Chhattisgarh Chief Minister Vishnu Deo Sai has announced a 2% increase in DA for state government employees. Following the revision, DA has increased from 58% to 60%. The new rates will come into effect from November 1, 2026. Approximately 3.85 lakh employees and 1.50 lakh pensioners are expected to benefit from the decision. Meanwhile, the Mohan Yadav government in Madhya Pradesh has also announced a 2% DA hike. This will increase the allowance from 58% to 60%. The revised DA will be included in employees’ November 2026 salaries, with the increased amount scheduled to be paid in cash at the beginning of December.