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The central government increases dearness allowance twice a year. The first increase is announced in January-February, effective January 1st. It is credited to employees' accounts along with arrears in March-April. The second increase is announced in July-August, effective July 1st, and paid along with arrears in September-October.

In 2026, i.e. this year, the dearness allowance for the first half of the year was implemented in April, and the January arrears were credited to employees' bank accounts. Therefore, the dearness allowance for the second half of the year is now expected to be announced in September or October. This increase will take effect in July, and employees may receive 3 to 4 months' arrears.

This time, the dearness allowance of central government employees is expected to increase by approximately 3 percent. If this increase is implemented, the total dearness allowance could reach 63 percent. Discussions are also underway to integrate dearness allowance into the basic salary under the 8th Pay Commission. The 8th Pay Commission is expected to submit its report and recommendations to the government in the first half of 2027.

Meanwhile, various state governments have also begun increasing dearness allowances. In Uttarakhand, Bihar, Haryana, Rajasthan, Goa, Odisha, Tamil Nadu, and Arunachal Pradesh, dearness allowances for the second half of the year have been increased from 58% to 60%. Uttarakhand Chief Minister Pushkar Singh Dhami and Tamil Nadu's new Chief Minister C. Joseph Vijay announced the dearness allowance hike. All government employees and retired employees have also been directed to have the increased dearness allowance, along with arrears, credited to their accounts. This amount is expected to be credited to all beneficiaries' accounts by September.

PC: AajTak