📷 Image: Wikimedia Commons / Prime Minister's Office, Government of India
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Centre Announces 5% Dearness Allowance Rise for Diwali, Aiding 12 Lakh Employees and Pensioners
✍️ Bhaskar English
🗓 30 Oct 2026, 03:16 AM
👁 13
The central government has approved a 5% increase in Dearness Allowance effective from Diwali, covering roughly 12 lakh central employees and pensioners, with several states expected to mirror the move.
New Delhi — The Union Ministry of Finance has cleared a 5% hike in Dearness Allowance (DA) to be implemented from the Diwali period. The increase is slated to benefit about 12 lakh central government employees and pensioners across the country, raising their monthly take‑home pay in line with rising inflation.
The decision, announced in a press briefing, aligns with the government's broader effort to cushion the impact of price pressures on public sector workers. Officials said the revised DA will be back‑dated to the start of the festive season, ensuring that beneficiaries receive the enhanced allowance in their upcoming salary cycles.
State governments are watching the central move closely. Sources indicate that several states, including Maharashtra and Tamil Nadu, are likely to adopt a similar 5% DA uplift for their own staff and retirees, pending cabinet approvals. The coordinated approach aims to provide uniform relief to a large segment of the public workforce during the high‑cost festive period.
Economists note that while the hike offers immediate relief, it also adds to the fiscal outlay for the Union and state budgets. However, the government maintains that the measure is essential to sustain real wages and prevent erosion of purchasing power among salaried and pensioned citizens.
The DA revision will be reflected in the next payroll run after Diwali, and the Ministry has urged all concerned departments to update their payment systems accordingly.
The decision, announced in a press briefing, aligns with the government's broader effort to cushion the impact of price pressures on public sector workers. Officials said the revised DA will be back‑dated to the start of the festive season, ensuring that beneficiaries receive the enhanced allowance in their upcoming salary cycles.
State governments are watching the central move closely. Sources indicate that several states, including Maharashtra and Tamil Nadu, are likely to adopt a similar 5% DA uplift for their own staff and retirees, pending cabinet approvals. The coordinated approach aims to provide uniform relief to a large segment of the public workforce during the high‑cost festive period.
Economists note that while the hike offers immediate relief, it also adds to the fiscal outlay for the Union and state budgets. However, the government maintains that the measure is essential to sustain real wages and prevent erosion of purchasing power among salaried and pensioned citizens.
The DA revision will be reflected in the next payroll run after Diwali, and the Ministry has urged all concerned departments to update their payment systems accordingly.