DA, DR hiked by 3% for govt employees; cabinet announces big bonanza before Diwali
Central government employees will increased DA hike in their salary along with six months of arrears from January 2026.
New Delhi: The central government employees who have been eagerly anticipating the announcement on July 2026 DA hike have got a big boost before Diwali. The cabinet has announced to hike Dearness Allowance by 3 percent from 60 percent. With the latest round of hike, the Dearness Allowance for government employees now stands at 63 percent.
Central government employees will get the increased DA hike in their salary along with six months of arrears from January 2026.
AICPI-IW August 2026
The DA hike is based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) figures. As per the Ministry of Labour and Employment's data, the AICPI-IW for August 2026 was at 154.4, up 1.2 points from 153.2 in July.
Bonus worth Rs 2,010 crore for over 11.40 lakh railway employees
The Union Cabinet on October 14 approved a productivity-linked bonus (PLB) for 78 days, amounting to Rs 2,009.61 crore, to 11,40,770 railway employees. The maximum amount payable per eligible railway employee is Rs 17,951 for 78 days, in recognition of the excellent performance by the Railway staff.
The amount will be paid to various staff categories, like track maintainers, loco pilots, train managers (guards), station masters, supervisors, technicians, technician helpers, points men, ministerial staff, and other Group 'C' staff.
According to the Cabinet, the PLB payment to eligible railway employees is made each year before the Durga Puja/Dusshera holidays.