DA hike news: Will central govt employees get a 3% DA hike on October 21?
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DA hike after Dussehra: Will the government announce it on October 21?
Central government employees were expecting a dearness allowance (DA) hike announcement after the Cabinet meeting on October 14. However, the government announced a performance-linked bonus for Railway employees without announcing the much-awaited DA hike.
Employees waiting for the July 2026 DA revision will have to wait longer. Attention has now shifted to the next Cabinet meeting scheduled for October 21, a day after Dussehra.
Employees waiting for the July 2026 DA revision will have to wait longer. Attention has now shifted to the next Cabinet meeting scheduled for October 21, a day after Dussehra.
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DA hike: What do employees expect on October 21?
C. Srikumar, Secretary of the All India Defence Employees’ Federation (AIDEF), told ET Wealth Online that the DA hike would most likely be announced at Wednesday's Cabinet meeting.
Manjeet Patel, President of the All India New Pension Scheme Employees’ Federation, also said an announcement before that meeting did not appear imminent. The government has not officially confirmed the date of the announcement.
Manjeet Patel, President of the All India New Pension Scheme Employees’ Federation, also said an announcement before that meeting did not appear imminent. The government has not officially confirmed the date of the announcement.
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Does the DA hike have to be announced on a Wednesday?
The Union Cabinet generally holds its regular meetings on Wednesdays, and several DA hike announcements have followed these meetings.
However, there is no fixed rule that the announcement must come on a Wednesday. The previous DA hike was announced on Saturday, April 18, 2026. Earlier, the government announced the hike on Wednesday, October 1, 2025, and Saturday, March 28, 2025.
However, there is no fixed rule that the announcement must come on a Wednesday. The previous DA hike was announced on Saturday, April 18, 2026. Earlier, the government announced the hike on Wednesday, October 1, 2025, and Saturday, March 28, 2025.
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DA hike calculation: Will the rate rise from 60% to 63%?
The current DA rate for central government employees is 60%. The government revises DA twice a year, using retail inflation data for the preceding periods. For the July 2026 revision, the 12-month average retail inflation from July 2025 to June 2026 is being considered.
Based on the June inflation data, DA could rise to approximately 63%, implying a potential increase of 3 percentage points. The final rate will be known only after the government announces the revision.
Based on the June inflation data, DA could rise to approximately 63%, implying a potential increase of 3 percentage points. The final rate will be known only after the government announces the revision.
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Why are employee associations demanding an early DA hike?
Employee associations have urged the government to announce the July 2026 DA revision soon, citing rising prices of essential commodities. In a letter dated October 10, 2026, AIDEF said increasing living costs were putting central government employees and pensioners under financial strain. The federation requested that the government announce the DA hike as soon as possible.