Positive impactEconomy
DA hike before Diwali 2026: How much extra salary could central government employees get if DA rises to 63%?
Mint 1 hr ago·18 Oct 2026, 11:59 am
The central government is considering a modest rise in Dearness Allowance (DA) for its employees, moving from the current 60 % to 63 % ahead of the Diwali season. DA is a cost‑of‑living component added to basic pay, so the change would lift the monthly take‑home of salaried staff across various pay bands.
For investors, a higher disposable income for millions of government workers can translate into a short‑term boost in consumer demand, especially for festive‑related retail, FMCG and automobile sales. At the same time, the additional payroll outlay adds to the fiscal deficit, which could weigh on sovereign bond yields and overall market sentiment.
The key watch‑points are the timing and certainty of the government’s decision, any accompanying fiscal measures, and whether the hike will be extended to state‑level employees. Market participants will also monitor inflation data and the impact on consumer‑spending trends as Diwali approaches.
Excerpt from Mint
Central government employees could get a festive-season salary boost if the Centre approves a DA hike from 60% to 63%. Here’s how much extra monthly salary and July arrears employees could receive across different basic pay levels, and what remains unconfirmed. Central government employees awaiting a dearness…Read the original at Mint
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