DA Hike 2026: Centre Approves 3% Dearness Allowance Ahead Of Diwali; Check When The Arrears Will Be Credited

DA Hike 2026: Central government employees have received good news today. This Diwali has brought a welcome financial boost for central government employees and pensioners!

The Union Cabinet has approved a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR), raising the rate from 60% to 63% of basic pay and pension.

Announced by Union Minister Ashwini Vaishnaw ahead of the festive season, the revision will be effective retrospectively from July 1, 2026.

This also comes with good news for your bank accounts. The arrears will be credited soon. It means eligible beneficiaries can also expect arrears for the preceding months. With a financial outlay of approximately ₹10,016 crore, the decision aims to provide relief against inflation and rising living costs.

News Alert! Cabinet approves 3 per cent DA/DR hike for over 1.16 crore central govt employees/pensioners with effect from July 1, 2026.

— Press Trust of India (@PTI_News) October 28, 2026

DA Hike 2026: Here Is Everything You Should Know

DA Hike 2026: When Will The Arrears Be Credited?

The Diwali gift by the Union Cabinet was long-awaited. Every year, the DA hike gets a little delayed but is also approved before festivals. Diwali every year brings good news for employees.

So, the 3% Dearness Allowance (DA) hike has brought welcome news for central government employees and pensioners ahead of Diwali 2026.

With the revised DA rate increasing from 60% to 63%, beneficiaries are now waiting for their revised salaries and pending arrears.

The hike is effective retrospectively from July 1, 2026, which means eligible employees can receive arrears for the preceding months.

Although the hike has been approved, the exact payment date depends on the government's official instructions and payroll processing.

Here is a look at the expected arrears timeline, the months covered and the possibility of an early festive payout.

DA Arrears 2026: Key Updates And Expected Timeline

1) July 1, 2026 Revised DA Effective Date: The 3% DA hike will apply retrospectively from July 1, 2026, increasing the rate from 60% to 63% of basic pay.

2) July–October 2026: Arrears Accumulation: Eligible employees may receive arrears covering the difference in DA for July, August, September and October.

3) October 28, 2026 Cabinet Approval: The Union Cabinet approved the 3% DA hike. Since the approval came late in October, the revised amount may be processed in the next salary cycle.

4) Before Diwali Possibility Of Early Payment: Employee federations have reportedly requested the early release of arrears. However, an advance payment has not been officially confirmed.

5) November 2026, Expected Salary Revision: Employees may receive their revised salary at the 63% DA rate, subject to the government's implementation instructions.

6) November End 2026: Expected Arrears Credit: The arrears may be credited along with the November salary. The final payment date will depend on the official order and payroll processing.

7) Official Memorandum, Awaiting Implementation Details: The Department of Expenditure is expected to issue instructions outlining the implementation and payment process. Individual ministries and departments will then process the eligible amounts.

Also Read: DA Hike 2026: What Is Dearness Allowance And Will It Increase Before Diwali? Check How The Salary Will Change With A 3% Rise In DA