📷 Image: Wikimedia Commons / Ministry of Finance of India
Business
How pending DA arrears will be cleared after Diwali dearness allowance hike
✍️ Livemint
🗓 12 Nov 2026, 11:01 PM
👁 8
The government has outlined the procedure for settling pending dearness allowance arrears after states raised DA on Diwali. Guidelines detail the timing and mode of payment to affected employees.
The central government has issued a framework to clear pending dearness allowance (DA) arrears following the recent DA hike announced for the Diwali period. State administrations that implemented the increase are now required to follow the prescribed steps to ensure that employees receive the backdated amount without further delay.
According to the guidelines, the arrears will be processed through the existing payroll systems of each state, with the finance ministries coordinating the transfer of funds from the central pool. Payments are expected to be credited directly to the bank accounts of eligible staff in the upcoming payroll cycles.
Officials emphasized that the procedure aims to maintain transparency and avoid duplication, urging state finance departments to submit verified arrears statements within the stipulated timeline. The move is intended to provide timely relief to government workers who were awaiting the revised allowance.
The dearness allowance, a cost‑of‑living component of salaries, is typically revised twice a year. This Diwali adjustment aligns with the festive season and is expected to boost disposable income for a large segment of the public sector workforce.
According to the guidelines, the arrears will be processed through the existing payroll systems of each state, with the finance ministries coordinating the transfer of funds from the central pool. Payments are expected to be credited directly to the bank accounts of eligible staff in the upcoming payroll cycles.
Officials emphasized that the procedure aims to maintain transparency and avoid duplication, urging state finance departments to submit verified arrears statements within the stipulated timeline. The move is intended to provide timely relief to government workers who were awaiting the revised allowance.
The dearness allowance, a cost‑of‑living component of salaries, is typically revised twice a year. This Diwali adjustment aligns with the festive season and is expected to boost disposable income for a large segment of the public sector workforce.