DA hike: Oct 21 didn't bring good news; govt employees anticipate ‘Diwali gift’ from next Cabinet meet | What's expected

DA hike: After the Union Cabinet meetings held on October 14 and 21 did not result in the much-awaited announcement of the dearness allowance hike, central government employees and pensioners are now awaiting the next meeting on 28 October for relief, according to reports.

Notably, the Centre on 16 October announced a non-performance-linked bonus for central government employees, with no word on DA or dearness relief (DR). DA and DR are percentages of employees' and pensioners' basic pay that aim to mitigate the impact of the rising cost of living and inflation.

Employees, pensioners disappointed during Dussehra

Many employees and pensioners were expecting the Cabinet or Finance Ministry to announce the July 2026 DA hike ahead of Dussehra festivities earlier this week. This would have been in line with past announcements made between late September and early to mid-October.

DA is updated biannually using data from the All India Consumer Price Index (AICPI), as per the 7th Central Pay Commission's recommendations. The CPC announcements usually come in March and October, with rollouts in January and July.

Notably, the government has not officially confirmed a date for the second DA hike this year. The last hike was announced in April this year, when the Finance Ministry increased DA from 58% to 60% of basic salary, effective from 1 January 2026.

Anticipation building for ‘Diwali gift’

According to a Moneycontrol report, the next Union Cabinet meeting is likely to be on 28 October, as central government sessions are usually held on Wednesdays, with some exceptions when dates are postponed or multiple meetings are held during the week to tackle issues.

Now, with Diwali on 8 November, expectations are building around a possible “Diwali gift” announcement at the likely 28 October meeting. Further, announcements published by the Press Information Bureau (PIB) over the past five years show that the July instalment was announced on the following dates: