DA hike: Tamil Nadu, MP, Himachal, Rajasthan, Kerala — Full list of states with dearness allowance hikes ahead of Diwali
Mint 1 hr ago·3 Nov 2026, 2:22 am
The Union Cabinet has approved a 3% increase in dearness allowance (DA) for central government employees and pensioners, moving the rate from 60% to 63% of basic pay effective July 1. In line with the festive season, several states—including Tamil Nadu, Madhya Pradesh, Himachal Pradesh, Rajasthan and Kerala—have announced similar DA hikes for their own staff and retirees.
The extra cash flow is likely to lift household consumption, especially on Diwali shopping, travel and food, which can benefit retail, consumer durables and FMCG companies. At the same time, higher wages may add to price pressures, keeping an eye on inflation readings that could influence monetary policy.
Investors should monitor retail sales data, CPI trends and any further state‑level wage adjustments in the coming weeks. Corporate earnings reports from consumer‑oriented firms will show whether the DA boost translates into higher demand, while the fiscal cost to state budgets may affect fiscal‑deficit outlooks.
Excerpt from Mint
The Union Cabinet raised dearness allowance for central government employees and pensioners by 3%, from 60% to 63% of basic pay, effective July 1 ahead of Diwali. Here's a look at the states that have also hiked DA amid the festive season… The Union Cabinet has hiked dearness allowance by 3% for central government…Read the original at Mint
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