DA Hike: Ahead of Diwali, the Himachal Pradesh government has made a significant announcement regarding the Dearness Allowance (DA). On Friday, Chief Minister Sukhvinder Singh Sukhu announced a 5% increase in the DA for state government employees. Meanwhile, central government employees and pensioners are eagerly awaiting an increase in their Dearness Allowance, effective from July 2026. The DA is revised twice a year—in January and July.
In January 2026, the government had increased the DA from 58% to 60%. Now, a potential hike of 3% or 4% for July 2026 is being considered. However, the final increase will be confirmed only after an official announcement by the government.
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How much will your salary increase if the DA rises by 3% or 4%?
The benefit of a DA hike is calculated based on an employee’s basic salary. If the DA increases from 60% to 63%, the employee will receive an additional 3% of their basic salary. Similarly, if the DA reaches 64%, they will receive an additional 4%. Let’s look at how the increase would apply to different basic salary levels:
If your basic salary is ₹18,000, a 3% hike would result in an additional DA of ₹540, while a 4% hike would mean an additional DA of ₹720. If your basic salary is ₹35,400, a 3% hike would result in an additional DA of ₹1,062, and a 4% hike would mean an additional DA of ₹1,416.
How is the DA calculated?
The Dearness Allowance for central government employees is determined according to the rules of the Seventh Pay Commission. It is calculated based on the 12-month average of the Consumer Price Index for Industrial Workers (CPI-IW). The DA for any employee is determined in relation to the rising inflation in the country.
5% Increase in DA in Himachal Pradesh
Chief Minister Sukhvinder Singh Sukhu announced a total 5% increase in the Dearness Allowance (DA) for employees on Friday. Chief Minister Sukhu stated that Class IV employees will receive the DA hike along with a revised arrear of Rs 10,000. This amount will be credited to their bank accounts on November 1st.
This decision by the Himachal government will benefit 275,000 state employees and pensioners. Chief Minister Sukhvinder Singh Sukhu announced the DA hike while speaking to the media. This includes a 4% increase for the current year and a 1% increase representing outstanding DA from the previous year. In addition to the DA benefit, these employees will also receive Rs 10,000.