DA Hike Update: Just before the festive occasions of Dussehra and Diwali, there is significant news for numerous central government employees and retirees. The Confederation of Central Government Employees and Workers has sent a letter to the Department of Expenditure, Ministry of Finance, requesting the prompt announcement of dearness allowance (DA) and dearness relief (DR) effective from July 2026.

Additionally, employee groups have asked for an immediate release of an ad hoc bonus of up to Rs 21,000 before Dussehra to meet financial requirements during the festivals.

Key Points from the Letter to the Finance Ministry on September 24:

– The employee union emphasized in a letter dated September 24, 2026, that they are not seeking any advance or extra benefits.
– They mentioned that although the relevant Consumer Price Index (CPI-IW) data and formula are available, the formal process should be expedited to ensure that the benefits from July 2026 are reflected in employees’ monthly salaries without delay, and any arrears are paid according to regulations.
– The letter highlighted that employees’ financial responsibilities have grown due to expenses like children’s education, household costs, and festivals, emphasizing that a timely announcement would bring relief.

Expected DA Increase:

– The primary goal of dearness allowance, revised twice a year in January and July, is to alleviate the impact of inflation on employees.
– AICPI-IW data for July 2026 was recorded at 153.2 points.
– Anticipated increase: Based on this data, a 4% rise in dearness allowance is projected, which would elevate DA from the present 60% to 64%.

Demand for Diwali Bonus and Rs 21,000 Starting Salary:

– Staff Side NC-JCM and the All India NPS Employees Federation have called on the government to swiftly decide on bonuses and DA in light of the festive period.
– They have urged for the disbursement of a revised bonus of up to Rs 21,000 to central government employees prior to Dussehra/Diwali.
– Manjeet Singh Patel, president of the All India NPS Employees Federation, mentioned that the government often adjusts salary payments based on local requirements. For instance, salaries in Kerala are issued early for Onam, and recently, salaries/pensions were paid on September 25 due to a bank strike from September 26-28.
– Patel noted that the central government typically announces the July DA revision by the end of September, with the increased DA and any arrears from previous months included in the October payroll of employees.