Several state governments have revised Dearness Allowance (DA) and Dearness Relief (DR) for government employees and pensioners during 2026. The changes vary from state to state, with some governments also approving payments of pending DA arrears.
DA is linked to the basic pay of eligible government employees, while DR is provided to pensioners. The allowance is revised periodically to account for changes in the cost of living and inflation.
Among the latest announcements, Sikkim has revised DA and DR with effect from January 1, 2026, while other states including Punjab, Andhra Pradesh, Assam, Bihar, Odisha, Tamil Nadu, Uttar Pradesh and West Bengal have also announced separate revisions.
Sikkim DA Hike: New Rates for Employees and Pensioners
The Sikkim government has increased DA and DR for employees and pensioners with effect from January 1, 2026.
For those covered under the revised basic pay structure, the rate has been increased from 58% to 60%. For employees and pensioners drawing pay under the pre-revised structure, the rate has moved from 257% to 262%.
The revised rates also cover eligible contractual employees and personnel working in work-charged establishments who receive pay under the regular state government scales.
The change also applies to All India Service officers working under the Sikkim government. AIS officers under the pre-revised Sixth Pay Commission structure will receive DA at 262%, while those covered under the revised Seventh Pay Commission structure will receive 60%. The Finance Department has also specified rounding rules for fractional amounts.
DA Hike in Punjab, Andhra Pradesh and Other States
Punjab has approved an 8 percentage-point increase in DA for government employees and pensioners. The increase is being implemented in two instalments of 4 percentage points each, taking the total DA to 50%. The revised allowance is effective from September 1, 2026.
Andhra Pradesh has approved two pending DA revisions with a combined increase of 4.55 percentage points. The first revision of 2.73% applies retrospectively from July 1, 2024, while the second increase of 1.82% applies from January 1, 2025. The resulting DA rate under the applicable revised pay structure rises to 41.86%, with arrears scheduled to be paid in instalments during 2027 and 2028.
Assam increased DA and DR by 2 percentage points, taking the rate from 58% to 60%. The decision covers state government employees and various categories of pensioners.
Arunachal Pradesh also raised DA and DR by 2 percentage points, moving the rate from 58% to 60% with effect from January 1, 2026.
Bihar approved different increases depending on the applicable pay commission. Employees and pensioners under the 7th Pay Commission saw DA move from 58% to 60%, while the rate for those covered under the 6th Pay Commission increased from 257% to 262%. Under the 5th Pay Commission, the rate rose from 474% to 483%.
Odisha, Uttar Pradesh, Tamil Nadu and Maharashtra
Odisha increased DA from 58% to 60% for employees under the revised 2017 pay structure, with the change effective from January 1, 2026. A corresponding increase in relief for pensioners was also approved. The move was reported to benefit around 8.5 lakh employees and pensioners.
Uttar Pradesh approved a 2 percentage-point increase in DA, taking the rate to 60% for eligible employees and pensioners. Reports said the revision would cover around 16 lakh personnel, including government employees and teachers.
Tamil Nadu raised DA for government employees and teachers from 58% to 60%, with retrospective effect from January 1, 2026. The revision also extends to pensioners and family pensioners and is expected to benefit around 16 lakh people.
Maharashtra approved ₹800 crore for payment of DA arrears to state government employees under the 5th, 6th and 7th Pay Commission structures.
West Bengal Announces 20% DA Increase
West Bengal has announced a 20 percentage-point increase in DA and DR for eligible state government employees and pensioners. The revised rate takes effect from October 1, 2026, raising the applicable DA under the current pay structure to 38%.
The latest state-level decisions show that DA revisions in 2026 differ according to the respective pay commission, employee category and state government rules. Employees and pensioners should therefore check the applicable government order for their state before calculating the revised amount or arrears.
Disclaimer
This article is intended for general informational purposes and is based on government notifications and published reports available at the time of writing. DA and DR rates, effective dates, arrears and eligibility can differ according to state, pay commission and employee category and may be revised through subsequent orders. Readers should verify the latest notification issued by their respective state government or finance department before relying on the information for salary or pension calculations.