DA Hike 2026: Several states have announced relief in DA and DR (Dearness Relief) for government employees and pensioners in the year 2026. Several states, including Assam, Bihar, Punjab, Tamil Nadu, Uttar Pradesh, West Bengal, Odisha, and Sikkim, have increased DA. Some states have also announced the payment of old arrears. The purpose of DA is to somewhat offset the declining purchasing power of employees due to rising inflation. Let’s explore its details in detail.

The Sikkim government has introduced a significant relief measure for state employees and pensioners by raising dearness allowance (DA) and dearness relief (DR) effective from January 1, according to an official circular from the Finance Department.

Key Points of the DA and DR Increase:

1. Employees and pensioners under revised pay scales: The DA/DR for those receiving salaries based on the revised basic pay structure has been raised from 58% to 60%.

2. Employees and pensioners under pre-revised pay scales: The DA/DR for individuals receiving pay under the non-revised basic pay structure has been increased from 257% to 262%.

3. Contract and work-charged employees: The revised DA rates will be applicable to contract employees in the regular pay scale of the State Government and employees of work-charged establishments.

Other States’ DA Increases:

1. Punjab has announced an 8% total increase in DA for employees and pensioners, to be implemented in two 4% installments.

2. Andhra Pradesh has approved a 4.55% increase in DA, with old arrears to be paid in phases in the 2027 and 2028 salaries.

3. Arunachal Pradesh has raised DA and DR by 2% to 60%.

4. Assam has increased DA and DR by 2%, moving it from 58% to 60%.

5. Bihar has separately increased DA for employees and pensioners under different pay commissions.

6. Odisha has raised DA from 58% to 60%, benefiting about 8.5 lakh employees and pensioners.

7. Uttar Pradesh has increased DA and DR by 2% for approximately 16 lakh government employees, teachers, and pensioners.

8. Tamil Nadu and Sikkim have also increased DA and DR by 2%, bringing it to 60% for employees, pensioners, and teachers in Tamil Nadu.

9. Maharashtra has allocated ₹800 crore for pending DA arrears under the 5th, 6th, and 7th Pay Commissions.

10. West Bengal has announced a substantial 20% increase in DA and DR, to be effective from October, with separate rates for employees under the old Pay Commission.