DA Hike: Finally the wait is over. State Government hikes dearness allowance. Central government employees are eagerly anticipating the release of their dearness allowance (DA) for the second half of 2026. It remains uncertain when this long wait will come to an end. Meanwhile, several state governments have already initiated hikes in DA for different employee categories.
For instance, Chief Minister Sukhwinder Singh Sukhu has sanctioned a 3% increase in DA for employees of the Himachal Pradesh State Forest Development Corporation (HPSFDCL) starting from April 1, 2025. Additionally, the Board of Directors of the HPSFDCL has granted a bonus to 175 employees with a monthly salary of up to Rs 21,000.
During its 216th meeting led by the Chief Minister, the Board of Directors also greenlighted the regularization of services for daily wage laborers who have completed 240 workdays over the last four years. This decision aligns with the notification issued by the Himachal Pradesh Government on April 1, 2026. Furthermore, the Board approved the regularization of eligible contract employees in line with the State Government’s policy. Another significant decision was the approval to raise the minimum wages for various worker categories from Rs. 425 to Rs. 450 per day, effective from April 1, 2026.
Regarding the awaited DA for central government employees
– Central employees are anticipating the release of their dearness allowance for the second half of the year, which is expected to be announced by the government around September or October.
– In April, the Finance Ministry declared a 2% increase in allowances for central government employees and pensioners, effective from January 1, 2026, raising the DA from 58% to 60% of the basic salary.
– This increase will benefit around 5 million central government employees and approximately 6.5 million pensioners, including retired defense and railway employees.
Anticipated increase in DA
The release of the All India Consumer Price Index for Industrial Workers (AICPI-IW) data for June is awaited, with figures of 149.1 in March 2026, 149.9 in April 2026, and 150.8 in May 2026. Based on projected trends from the AICPI-IW data, it is estimated that the figure for June 2026 will be around 151.7, potentially resulting in a 3-4% increase in dearness allowance for employees this month, subject to final confirmation based on the June 2026 AICPI-IW data and government approval.