DA hike: Tamil Nadu, MP, Himachal, Rajasthan, Kerala — Full list of states with dearness allowance hikes ahead of Diwali

The Union Cabinet has hiked dearness allowance by 3% for central government employees and pensioners, raising the component from 60% to 63% of basic pay, effective from 1 July, as per the 7th Central Pay Commission recommendation.

Under 7th CPC recommendations, DA is hiked twice a year, using data from the All-India Consumer Price Index (AICPI). This “Diwali gift” is the second DA increase this year, after the Centre hiked the component by 2% in April from 58% to 60%, effective from 1 January.

DA is a percentage of employees' basic pay that aims to mitigate the impact of the rising cost of living and inflation. Usually, announcements from the Centre come in March and October, with rollouts in January and July. Over 1 crore beneficiaries — about 50 lakh central government employees and nearly 65 lakh pensioners, including defence and railway personnel and retirees, gain from DA and dearness relief (DR) hikes.

States hike DA ahead of Diwali 2026 — Full list

Besides the Finance Ministry's announcement on 28 October, state governments also hiked DA for employees and pensioners ahead of Diwali. This includes a 5% hike by the Himachal Pradesh government, 3% DA hikes each by the Tamil Nadu and Rajasthan governments, and 2% increases by the Chhattisgarh, Madhya Pradesh and Keralam governments, each.