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Government Announces Diwali Bonanza for Central Employees, Hikes Dearness Allowance by 3%

New Delhi: Ahead of Diwali, the Central Government has reportedly announced a major relief for more than 1.16 crore central government employees and pensioners by approving a 3% hike in Dearness Allowance (DA). The revised DA will be effective from July 1, 2026. Following the decision, central government employees can expect an increase in their salaries, while pensioners will receive higher pension payments.

Dearness Allowance is an additional payment provided by the government to its employees to help them cope with rising inflation and the increasing cost of living. It is calculated as a fixed percentage of an employee’s basic salary.

The reported decision is expected to provide financial relief to millions of central government employees and pensioners across the country amid rising living expenses. The government is expected to issue a formal notification soon, after which the revised payments will be processed.

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