DA hike news: The Uttarakhand government has this week approved a 3% hike in dearness allowance for state government employees, increasing the component to 63% of basic pay, with effect from 1 July 2026, ANI reported.
In a statement, Chief Minister Pushkar Singh Dhami’s Office said this follows the Centre’s own 3% DA hike to 63%, effective from July, announced in October, under the 7th Central Pay Commission (CPC). The decision brings Uttarakhand state employees’ DA at par with their central government counterparts, it added.
Who benefits from Uttarakhand DA hike?
Beneficiaries include the state government employees, eligible personnel working in local bodies, aided educational institutions, state universities, technical educational institutions, and those drawing salaries under the University Grants Commission (UGC) pay scales.
The statement added that the differential amount, i.e. DA arrears, for the period from 1 July to 31 October 2026, will be paid in cash to eligible employees.
DA helps to offset the impact of inflation on their cost of living for government employees. While Dearness Relief (DR), serves a similar purpose for pensioners by helping them manage the effect of rising prices on their pension income, the report added.
DA hike announcements ahead of Diwali 2026
DA is a percentage of employees’ basic pay that aims to mitigate the impact of the rising cost of living and inflation. As per the 7th Central Pay Commission (CPC) recommendations, the Centre revises DA twice annually, using data from the All-India Consumer Price Index (AICPI).
These announcements usually come in March and October, with rollouts in January and July. Effective from 1 July, the Centre’s “Diwali gift” is the second DA increase this year, after it hiked the component by 2% in April from 58% to 60%, effective from 1 January for more than 1 crore beneficiaries — approximately 48.54 lakh central government employees and 68.71 lakh pensioners across the country.
Notably, besides the Finance Ministry’s announcement on 28 October, state governments also hiked DA for employees and pensioners ahead of Diwali, adding ₹10,016.10 crore to the government’s expenditure.
This includes a 5% hike by the Himachal Pradesh government, 3% DA hikes each by the Tamil Nadu, Rajasthan, Punjab, Arunachal Pradesh and Gujarat governments, 2.5% increase by the Karnataka government, and 2% increases by the Chhattisgarh, Madhya Pradesh and Kerala governments.
Earlier this year, after the Centre’s April announcement, the Indian Banks’ Association (IBA) revised the DA and DR for employees for May, June and July 2026. Later, the Indian Railways also announced a 2% hike in DA and DR for staff and pensioners. Further, several states also followed the DA and DR hike announcements, including Telangana, Sikkim, Punjab, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Maharashtra, Odisha, Uttar Pradesh and West Bengal.
(With inputs from Agencies)
