New Delhi. With the beginning of the festive season, the eyes of central employees and pensioners are on the decisions related to dearness allowance and bonus. Amidst the discussions on the 8th Pay Commission, updates have also come out regarding the increase in DA and Diwali bonus. The employees are awaiting the verdict in both the cases.
First good news: 3 percent increase in DA
The dearness allowance, which will be applicable from July 2026, is calculated on the basis of AICPI-IW data from January to June. According to the given mathematics, after the index of June 2026 is recorded at 151.9, the DA rate comes to 63.78 percent.
The current DA is 60 percent. According to this, the proposed increase comes to 3 percent and DA can be 63 percent. This increase is considered effective from July 1, 2026. However, final payment will require official approval and orders from the Central Government.
Three months arrears also possible
If the government approves 63 percent DA and it is implemented from July 1, then the employees may get the difference of July, August and September as arrears. If it is paid along with October salary, employees can get additional amount during the festive season.
Second good news: Keep an eye on the bonus also
Along with DA, employee organizations have also demanded the government to start the process soon regarding Diwali bonus. Some organizations have sent a letter to the Finance Ministry demanding timely announcement of bonus and amendment in the wage ceiling of bonus.
The change in wage ceiling can be especially important for employees in Railways, Posts and Defense who receive productivity-based bonuses. However, the final decision on the amount and rules of bonus will be clear only after the order issued by the government.
Awaiting decision before Dussehra
There is hope among central employees that decisions related to DA and bonus may come out soon during the festive season. At present, the demands related to DA increase and bonus are in separate processes, so the final amount and date of payment will be decided only after the official announcement.