DA hike: Tamil Nadu, MP, Himachal, Rajasthan, Kerala — Full list of states with dearness allowance hikes ahead of Diwali

The Union Cabinet has hiked dearness allowance by 3% for central government employees and pensioners, raising the component from 60% to 63% of basic pay, effective from 1 July, as per the 7th Central Pay Commission recommendation.

Under 7th CPC recommendations, DA is hiked twice a year, using data from the All-India Consumer Price Index (AICPI). This “Diwali gift” is the second DA increase this year, after the Centre hiked the component by 2% in April from 58% to 60%, effective from 1 January.

DA is a percentage of employees’ basic pay that aims to mitigate the impact of the rising cost of living and inflation. Usually, announcements from the Centre come in March and October, with rollouts in January and July. Over 1 crore beneficiaries — about 50 lakh central government employees and nearly 65 lakh pensioners, including defence and railway personnel and retirees, gain from DA and dearness relief (DR) hikes.

States hike DA ahead of Diwali 2026 — Full list

Besides the Finance Ministry’s announcement on 28 October, state governments also hiked DA for employees and pensioners ahead of Diwali. This includes a 5% hike by the Himachal Pradesh government, 3% DA hikes each by the Tamil Nadu and Rajasthan governments, and 2% increases by the Chhattisgarh, Madhya Pradesh and Keralam governments, each.

• Kerala hiked DA and DR by 2% from 35% to 37%, be paid with the October 2026 salary, disbursed in November for state government employees, teachers, full-time contingent employees and local government staff, state service pensioners, family pensioners, and eligible ex-gratia pensioners and their families. This was the second increase following a 10% hike from 25% to 35% in February 2026. The state said it will provide additional relief to eligible employees and pensioners from rising inflation amid turbulent geopolitical times. It added that separate arrears orders will clarify the payment of pending dues.

Notably, after the Centre’s April announcement, the Indian Banks’ Association (IBA) revised DA and DR for employees for the months of May, June and July 2026. And later, the Indian Railways also announced a 2% hike in DA and DR for staff and pensioners. Further, a number of states also followed by DA and DR hike announcements including — Telangana, Sikkim, Punjab, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Maharashtra, Odisha, Uttar Pradesh and West Bengal.