State DA hikes Nov 2026: Gujarat, Punjab announce 3% increase; check revised dearness allowance rates, effective date
State government employees and pensioners in Gujarat and Punjab have received a dearness allowance (DA) boost ahead of Diwali, with both state governments announcing a 3% increase on 4 November 2026.
The revisions will raise the DA rate in both states, although the effective dates and arrears payment schedules differ. Here is a look at the revised DA rates, when the hikes take effect, and how much beneficiaries can expect in arrears.
Punjab Chief Minister Bhagwant Mann on Wednesday announced a 3 percentage-point increase in DA for state government employees and pensioners, benefiting around 8 lakh beneficiaries.
According to a PTI report, “this decision will benefit around 8 lakh government employees and pensioners, adding that the enhanced DA would be reflected in December salaries and pensions.”
With this announcement, the DA rate has increased from 50% to 53%, while the enhanced Dearness Relief (DR) will also benefit pensioners. The revised rates will be effective from 1 November 2026, and the enhanced amount will be reflected in salaries and pensions paid in December.
Earlier, on 23 September, the Punjab Finance Department issued a circular increasing DA by 8 percentage points, from 42% to 50%, effective 1 September 2026.
“The Governor of Punjab is pleased to release dearness allowance @8% to all the employees of Government of Punjab, thereby increasing the existing rate from 42% to 50% w.e.f. 01.09.2026 i.e. payable with salary of September, 2026.”
With the latest announcement, the Aam Aadmi Party (AAP)-led Punjab government has increased DA by 11% within two months.
The Gujarat government, led by Chief Minister Bhupendra Patel, has also announced a 3 percentage-point DA hike for state government employees and pensioners.
According to a PTI report, “the Gujarat government on Wednesday announced a 3 per cent hike in Dearness Allowance (DA) for its 4.62 lakh serving employees and 5.07 lakh pensioners, providing relief to over 9.69 lakh beneficiaries ahead of Diwali.”
The hike will raise the DA rate from 60% to 63%, effective 1 July 2026. The BJP-led Gujarat government will pay arrears for four months, from July to October 2026, along with November salaries and pensions.
According to the government announcement, ₹523 crore will be paid towards arrears, while the revision will impose an additional annual financial burden of ₹1,569 crore on the state exchequer.
The announcement follows the Union Cabinet's decision on 28 October 2026 to increase DA and Dearness Relief (DR) by 3 percentage points, from 60% to 63%, for central government employees and pensioners, effective 1 July 2026.
Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.
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HomeMoneyPersonal FinanceState DA hikes Nov 2026: Gujarat, Punjab announce 3% increase; check revised dearness allowance rates, effective date
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