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Cabinet approves 3% dearness allowance hike for central govt employees ahead of Diwali
✍️ India Today
🗓 29 Oct 2026, 03:17 PM
👁 18
The Union Cabinet has approved a 3% increase in dearness allowance for central government staff, a move welcomed as a Diwali bonus. The hike will raise the take‑home pay of millions of employees across the country.
New Delhi – In a decision taken during its recent meeting, the Union Cabinet approved a 3% rise in dearness allowance (DA) for all central government employees. The increase, announced just weeks before the Diwali festival, is expected to boost the disposable income of millions of staff members working in ministries, public sector undertakings and other government bodies.
The dearness allowance, a cost‑of‑living component of the salary structure, is adjusted periodically to offset inflation. By raising DA by three percent, the government aims to provide immediate financial relief to its workforce during the festive season.
Officials said the hike will be reflected in the next salary cycle, though the exact implementation date was not disclosed. The move has been described by employee unions as a "Diwali bonanza" and is likely to improve morale ahead of the holiday.
No additional changes to other salary components were announced, and the decision aligns with the government's broader effort to keep public‑sector remuneration competitive.
The Cabinet’s approval comes amid ongoing discussions about fiscal prudence, but the modest 3% increase was deemed affordable within the current budgetary framework.
The dearness allowance, a cost‑of‑living component of the salary structure, is adjusted periodically to offset inflation. By raising DA by three percent, the government aims to provide immediate financial relief to its workforce during the festive season.
Officials said the hike will be reflected in the next salary cycle, though the exact implementation date was not disclosed. The move has been described by employee unions as a "Diwali bonanza" and is likely to improve morale ahead of the holiday.
No additional changes to other salary components were announced, and the decision aligns with the government's broader effort to keep public‑sector remuneration competitive.
The Cabinet’s approval comes amid ongoing discussions about fiscal prudence, but the modest 3% increase was deemed affordable within the current budgetary framework.