DA hike: Here’s the full list of states that are considering Dearness Allowance increases for employees, pensioners

A significant number of India’s public service employees are set to benefit from their various state government’s announcements on Dearness Allowance hikes. From the Centre, DA was hiked in April by 2% from 58% of basic pay to 69%, effective from 1 January this year.

The Centre usually updates DA biannually using data from the All-India Consumer Price Index (AICPI), new announcements are made in March and October, with rollouts in January and July. The move is aimed at countering cost of living expenses for employees and pensioners amid rising inflation.

Full list of states considering DA hikes — Latest updates

Punjab Cabinet considering DA, DR dues, arrears

Punjab government on 30 May said it will consider payment of pending DA and DR dues to state government employees (across categories) and pensioners for the period between 1 July 2021 to 31 March 2024. It added that a sub-committee will discuss payment of arrears for employees and pensioners based on revised salary and pension benefits for the period between 1 January 2016 to 30 June 2021.

The same day, the government added that it has approved the process to dismantle a decades-old contractual employment system and regularisation framework for over 65,000 workers across 51 government departments.

More recently, on 11 July, the Joint Coordination Committee (JAC) of Punjab Government Employees and Pensioners demanded that the state fulfil long pending demands and reach a quick resolution. They have demanded the following: Approval for 18% DA hike, restoration of the Old Pension Scheme (OPS), implementation of the 4-9-14 Assured Career Progression (ACP) Scheme, withdrawal of notifications related to probation and pay rules, regularisation of contractual, outsourced and other temporary employees, revision of pensions in line with the recommendations of the 6th Punjab state pay commission, restoration of withdrawn allowances, enhancement of retirement gratuity, implementation of the 6th Punjab state pay commission’s remaining recommendations, and extension of minimum wages to women working on honorarium under various government schemes.

Himachal Pradesh reviewing DA, pension, pending arrears

Himachal Pradesh is reviewing DA and pending arrears for state employees and pensioners, Chief Minister Sukhvinder Singh Sukhu said, adding the government will safeguard their welfare and interests.

In June, the state also announced it will pay employees their full salary, including DA and house rent allowance (HRA), when they avail study leave for higher education purpose. Sukhu said employees are now entitled to 100% salary (last drawn) while on study leave — up from the 40% cap.

In July, the Himachal Pradesh State Forest Development Corporation (HPSFDC) said employees will receive a 3% hike in DA, with effect from 1 April 2025. The HPSFDC board has also approved bonus for 175 of the department’s employees who draw up to ₹21,000 monthly salary. It also revised minimum wages for different categories of workers from ₹425 to ₹450 per day, with effect from 1 April 2026.

West Bengal employees expect state to bridge gap with Centre

Expressing satisfaction with the 20% hike announced in the state budget last month, the Teachers’ organisations in West Bengal said it expects another hike because the “previous government had left behind a huge backlog”. Swapan Mondal, general secretary of the Bangiya Shikshak O Shikshakarmi Samiti said, “We are broadly satisfied with the decision. At the same time, we would appeal to the government to clear the remaining 22% by December.”

The hike increases DA to 38% of basic salary for West Bengal state government employees and pensioners — still nearly half of the 60% for central government employees. Notably, Bhaskar Ghosh, convenor of the Joint Struggle Forum of State Government Employees told reporters that Chief Minister Suvendhu Adhikari has committed to implementing the 7th pay commission recommendations by January.

Earlier in May, Bengal approved formation of its 7th state pay commission to decide salary and DA hikes for state government employees, educational institutions, government corporation, board staff and state government-aided bodies. According to the state Women, Child and Social Welfare Minister Agnimitra, the scope of a pay hike would also extend to staff of statutory entities such as civic bodies, local bodies and education boards, as well as those working in state-run education institutions

Onam gift for Kerala employees under consideration

Kerala is reportedly considering a 2% DA hike for state government employees to be disbursed in their August salaries, ahead of Onam festivities. Estimates peg the additional expenditure of such a decision on the state exchequer to be around ₹60 crore.

The move is aimed at providing financial relief and boosting state employee pay ahead of Onam. The festival will be celebrated in the last week of August this year. Mathrubhumi cited available information to report that the additional DA benefit could be disbursed with salaries in August 2026. An official order is awaited, but the announcement is expected to be an Onam “gift” for state government employees, it added.

DA hike announcements this year: Snapshot

Notably, after the Centre’s announcement came increases by the Indian Banks’ Association (IBA) — hiked basic salaries between ₹48,000 to ₹1,17,000 and DA from ₹435 to ₹1,050 for workmen and officer employees across levels for the months of May, June and July 2026; and the Indian Railways — hiked DA by 2%.

Various state governments also increased salaries in order to close gaps in payment with the central government. The latest being West Bengal, which hiked DA by 20% last month with effect from October taking the component to 38% of basic salary.

Prior to this, Arunachal Pradesh, Assam, Odisha, Tamil Nadu and Uttar Pradesh each approved 2% hikes, while Bihar implemented 2% hike for staff under the 7th pay commission, 5% hike for employees under 6th CPC and 9% for staff under 5th CPC.

Further, Maharashtra greenlit payment of ₹800 crore DA arrears under the 5th, 6th and 7th CPCs for November and December 2025, and January 2026; and 2% DR hike for retired All India Services officers.

Is a second DA hike from Centre likely in 2026?

While there is no official word yet, the debate over a higher DA revision has gained momentum. Employees and pensioners are increasingly looking forward to another 2-3% hike this year. Latest government data shows retail inflation in June 2026 rose to 4.38%, while food inflation climbed to 5.32%.

The final revision, however, will depend on the June 2026 data from the Labour Bureau’s All-India Consumer Price Index for Industrial Workers (AICPI-IW) and the government’s approval. Notably, AICPI-IW trends support a 3-4% DA hike — data for March 2026 showed the index at 149.1, for April 2026 at 149.9 and for May 2026 at 150.8, and for June 2026 is estimated at 151.7, assuming the increase continues at same rate as in May.

Thus, even if no DA hike is announced this month, central government employees and pensioners could still see a second hike announcement sometime in the second half of the year.

Disclaimer: This story is for educational purposes only.