Every time the government announces a hike in Dearness Allowance (DA) and Dearness Relief (DR), lakhs of central government employees and pensioners wait to see how much their salaries and pensions will increase. The biannual revision is meant to offset the impact of inflation and can make a noticeable difference to monthly payouts.
DA is paid as a percentage of an employee's basic salary. Since benefits such as provident fund, gratuity and pension are linked to basic pay, any increase in DA especially if it is merged with basic pay can also boost these benefits.
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Here is a comprehensive roundup of all major DA and DR announcements made so far in 2026 across central government ministries, banking institutions, and state administrations.
Central Government And Railway Personnel
Union Finance Ministry: In April 2026, the Union Finance Ministry approved a 2% increase in DA and DR for central government employees and pensioners. This adjustment raised the allowance from 58% to 60% of basic salary, effective from Jan.1, 2026.
Indian Railways: The Indian Railways announced a 2% hike in DA and DR in May 2026 for its extensive workforce and retired staff across all zonal networks, effective Jan. 1, 2026.
Banking Sector Revisions
Indian Banks' Association (IBA): The IBA announced revised DA figures for bank officers and staff covering May, June, and July 2026.
Basic salary bands ranging between Rs 48,000 and Rs 1,17,000 saw monthly DA adjustments increasing between Rs 435 and Rs 1,050, providing immediate financial relief to eligible personnel.
Key State Government Announcements
West Bengal: Approved a significant 20% DA hike, effective from October, raising the state's DA component to 38% of basic salary.
Arunachal Pradesh, Assam, Odisha, Tamil Nadu and Uttar Pradesh: Each state sanctioned a 2% DA hike for their respective state employees.
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Bihar: Announced differential revisions based on Pay Commission categories, approving a 2% hike under the 7th Central Pay Commission (CPC), 5% under the 6th CPC, and 9% under the 5th CPC.
Maharashtra: Cleared Rs 800 crore in DA arrears covering the 5th, 6th, and 7th CPC periods for late 2025 and early 2026, along with a 2% DR hike for retired All India Services officers.
What To Expect For The Second Half Of 2026
With the year's initial revisions implemented, attention turns towards the second DA announcement typically released ahead of the festive season.
Although July has ended, the possibility of another DA increase in the latter half of the year remains open. In a similar move last year, Labour and Employment Minister Ashwini Vaishnaw said in October 2025 that the Union Cabinet had sanctioned a 3% hike, raising DA to 53% of basic pay.
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