States Announce Dearness Allowance Hikes for Employees, Pensioners in 2026

Dearness Allowance (DA) and Dearness Relief (DR) hikes are being announced across various states for employees and pensioners in 2026, following the 7th Central Pay Commission (CPC) recommendations. These biannual adjustments, based on All-India Consumer Price Index (AICPI) data, aim to mitigate the impact of rising living costs. Over 1 crore beneficiaries, including 50 lakh central government employees and nearly 65 lakh pensioners, benefit from these revisions. The Centre's last hike in April increased DA from 58% to 60% of basic salary, effective January 1, 2026. Discussions by the 8th CPC are ongoing, with recommendations expected by May 2027.

Beyond central government actions, the Indian Banks' Association (IBA) announced revised DA and DR for bank workmen and officer employees for May, June, and July 2026, hiking basic salaries between ₹48,000 and ₹1,17,000 and DA from ₹435 to ₹1,050. Indian Railways also increased DA and DR by 2% for its staff and pensioners. Among states, Kerala hiked DA and DR by two percentage points, from 35% to 37%, payable with the October 2026 salary. Telangana released two DA and DR instalments, 3.64% and 2.73% respectively, to be paid with the October salary, representing a partial release of 15.43% pending from the previous government.

Sikkim announced in August a 2% hike in DA and DR under the 7th CPC (58% to 60%) and in October, a 5% hike under the 6th CPC (257% to 262%), both effective January 1, 2026, benefiting approximately 50,000 staff and pensioners. Punjab notified an 8% DA hike for state government employees and pensioners, effective September 1, to be rolled out in two 4% instalments reflected in October salaries. Andhra Pradesh approved two pending DA revisions, a combined 4.55% hike, implemented from September 2026 and disbursed in October, with retroactive effects from July 2024 and January 2025, and arrears released in 2027 and 2028.

Arunachal Pradesh increased DA and DR by 2%, effective January 1, 2026, raising DA to 60% for 69,248 regular employees. Assam approved a 2-percentage-point increase (58% to 60%) in May, benefiting over 8 lakh employees and pensioners. Bihar announced a 5% hike for 6th Pay Commission employees (257% to 262%), a 9% hike for 5th CPC (474% to 483%), and a 2% hike for 7th CPC (58% to 60%), all effective January 1. Maharashtra approved ₹800 crore in DA arrears for November and December 2025, and January 2026, alongside a 2% DR increase for retired All India Services officers. Odisha and Tamil Nadu both announced a 2% DA increase to 60%, effective January 1, benefiting around 8.5 lakh employees and pensioners in Odisha, and incurring an additional annual expenditure of ₹1,230 crore in Tamil Nadu. Uttar Pradesh announced a 2% DA and DR hike, effective January 1, benefiting around 16 lakh government employees, teachers, and pensioners. West Bengal increased DA and DR by 20%, effective October, raising the component to 38% of basic salary, with 5th CPC employees receiving 223% DA.

Editor's note: The draft comprehensively covers the state-wise data provided in the source text with high accuracy.