DA Hike 2026: Several state governments have announced increases in Dearness Allowance (DA) and Dearness Relief (DR) for government employees and pensioners this year. States including Assam, Arunachal Pradesh, Bihar, Sikkim, Tamil Nadu, Uttar Pradesh, Odisha, Maharashtra and West Bengal have either approved DA hikes or announced the payment of pending DA arrears.
Dearness Allowance is an important part of the salary structure of government employees. It is revised periodically to help employees and pensioners cope with inflation and the rising cost of living.
DA is generally revised twice a year on the basis of changes in the All-India Consumer Price Index (AICPI). Announcements are usually made around March and October, while the revised rates are generally applicable from January and July.
What Is the Latest Central Government DA Rate?
The Centre’s most recent DA revision was announced in April 2026. The Finance Ministry increased Dearness Allowance for central government employees from 58% to 60% of basic pay, with retrospective effect from January 1, 2026.
The increase in DA and Dearness Relief benefits more than 1 crore people, including approximately 50 lakh central government employees and around 65 lakh pensioners. Defence and railway employees and pensioners are also among the beneficiaries.
While the Centre’s next DA revision is awaited, several states have already announced their own revisions.
Full List of States That Have Announced DA Hikes
Andhra Pradesh
Andhra Pradesh recently approved two pending DA revisions, providing a combined increase of 4.55 percentage points for state government employees, local-body employees and university staff.
The first revision provides a 2.73 percentage-point increase, taking DA from 37.31% to 40.04% of basic pay. It is applicable retrospectively from July 2024.
The second revision adds another 1.82 percentage points, taking DA from 40.04% to 41.86%, effective retrospectively from January 2025.
The revised DA will be implemented from September 2026, with payment through salaries released in October. The accumulated arrears will be paid in instalments through salaries in 2027 and 2028.
Arunachal Pradesh
The Arunachal Pradesh government increased DA and DR by 2%, effective from January 1, 2026.
Following the revision, DA has risen from 58% to 60% of basic pay. The decision is expected to benefit approximately 69,248 regular state government employees.
Assam
Assam approved a 2 percentage-point increase in DA and DR in May.
The revision raised DA from 58% to 60%, with immediate effect. More than 8 lakh serving employees and pensioners are expected to benefit from the decision.
Bihar
Bihar has announced different DA revisions for employees covered under various Pay Commissions.
For employees and pensioners under the 6th Pay Commission, DA and DR were increased by 5 percentage points, from 257% to 262%, effective January 1.
For those covered under the 5th Pay Commission, DA was raised by 9 percentage points, from 474% to 483%.
Employees covered under the 7th Pay Commission also received a revision, with DA increasing from 58% to 60%.
Maharashtra
Maharashtra has approved the release of ₹800 crore in DA arrears for state government employees covered under the 5th, 6th and 7th Central Pay Commissions.
The arrears relate to November and December 2025 and January 2026.
The state has also approved a 2% increase in Dearness Relief for retired All India Services officers.
Odisha
The Odisha government announced a 2% increase in DA for state government employees and pensioners.
The revised rate has gone up from 58% to 60% of basic pay, effective January 1, 2026.
The decision is expected to benefit around 8.5 lakh state government employees and pensioners.
Sikkim
Sikkim announced a 2% increase in both DA and DR in August.
The revised rates are applicable from January 1, 2026, providing additional financial support to state government employees and pensioners.
Tamil Nadu
Tamil Nadu increased DA by 2% for state government employees, pensioners and teachers.
The revision is effective from January 1, 2026, taking DA to 60% of basic salary.
The state government is expected to incur an additional annual expenditure of approximately ₹1,230 crore due to the revision.
Uttar Pradesh
Uttar Pradesh announced a 2% DA and DR hike on May 21.
The increase is effective retrospectively from January 1, 2026, taking DA from 58% to 60% of basic pay.
The decision is expected to benefit approximately 16 lakh government employees, teachers and pensioners across the state.
West Bengal
West Bengal announced a significant increase in DA and DR in June.
For state government employees and pensioners, DA and DR were increased by 20%, effective from October. This takes the applicable DA rate to 38% of basic salary.
Employees who continue to receive salaries under the 5th Pay Commission will receive DA at 223%, compared with the earlier rate of 171%, from October 1.
The notification also covers pensioners and family pensioners whose pensions have not yet been revised under the Revision of Pay and Allowances (ROPA), 2009. They will receive DR at 223% until their pensions are revised.
Why Does a DA Hike Matter to Government Employees?
Dearness Allowance is designed to offset the impact of inflation on the purchasing power of government employees. Since it is calculated as a percentage of basic salary, an increase in DA can directly raise an employee’s monthly earnings.
DA can also have an indirect impact on several other components linked to salary. Basic pay is used for calculating elements such as provident fund contributions, pension, allowances and gratuity, among others.
This is why employees’ demand for a higher DA rate or a merger of DA with basic pay can have a significant impact on their overall compensation.
What About the Next Central DA Hike?
Central government employees and pensioners are now awaiting the next DA revision, which is expected to be announced around the usual revision cycle.
At the same time, the issue of DA revision is being considered in the context of the 8th Central Pay Commission (CPC). The commission is expected to submit its recommendations within the stipulated timeframe following its constitution, with the final report expected by May 2027 at the latest.
Any recommendations affecting pay, allowances, pensions or DA could therefore have a wider financial impact on central government employees and pensioners.
For now, employees and pensioners across different states will be watching for further announcements on pending DA revisions, arrears and future increases.