Central government employees and pensioners could receive an important update on Dearness Allowance (DA) and Dearness Relief (DR) ahead of the Dussehra and Diwali festive season. The Confederation of Central Government Employees and Workers has urged the Department of Expenditure under the Ministry of Finance to complete the process for the DA and DR revision due from July 2026 at the earliest.
The employee body has also sought the early release of a revised ad hoc bonus of up to ₹21,000 for central government employees before the festive period.
Employee Body Seeks Early DA and DR Announcement
In its letter dated September 24, 2026, the Confederation said it was not asking for any advance or additional benefit. Instead, it requested the government to complete the formal process without unnecessary delay so that the benefit applicable from July 1, 2026, can be reflected in salaries and the corresponding arrears can be paid as per the applicable rules.
The organisation pointed to rising financial commitments, including education expenses, household spending, travel and festival-related costs. It said an early decision on DA and DR would provide timely financial relief to employees and pensioners.
DA and DR are revised twice a year under the prescribed formula to account for changes in the cost of living. The latest July 2026 CPI-IW reading stood at 153.2 points, according to the Labour Bureau.
DA May Rise From 60% to 64%
The July 2026 CPI-IW figure has strengthened expectations of a 4 percentage-point increase in DA. Based on the available 12-month index data, the estimated DA works out to around 64%, compared with the existing 60%. However, the 64% figure remains an estimate until the government issues the formal notification.
If approved, the revised rate would apply from July 1, 2026, with applicable arrears to be regulated according to government rules.
Demand for ₹21,000 Bonus Before Dussehra and Diwali
Along with the DA and DR announcement, employee organisations have also called for an early decision on the revised bonus. The Staff Side NC-JCM has urged the government to release a bonus of up to ₹21,000 to central government employees during the upcoming Dussehra festive period.
Manjeet Singh Patel, president of the All India NPS Employees Federation, said the government has previously adjusted salary disbursement schedules according to local requirements. He cited the practice of early salary payments in Kerala during Onam and the recent early payment of salaries and pensions ahead of the bank strike scheduled for September 26–28.
Patel also said the Central Government generally announces the July DA revision by the end of September, with the revised amount and applicable arrears usually reflected in employees’ October salaries.
What Central Government Employees Should Know
The July 2026 DA and DR revision is still awaiting the government’s formal announcement. While the available CPI-IW data points towards a possible DA rate of 64%, the final figure and payment schedule will depend on the official decision.
Employees and pensioners will need to wait for the formal notification to confirm the revised rate, effective date and payment of arrears.
Disclaimer: This article is intended for general informational purposes and is based on reported statements, official CPI-IW data and publicly available information. The final DA/DR rate, bonus decision and payment schedule will be determined by the Central Government through its official orders and notifications. Readers should refer to the relevant government notification for confirmed details.