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  5. Dearness allowance hike: Suspense continues as Union Cabinet skips DA announcement today; 2 proposals approved

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Dearness allowance hike: Suspense continues as Union Cabinet skips DA announcement today; 2 proposals approved

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By Upstox News Desk

2 min read | Updated on October 14, 2026, 19:15 IST

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SUMMARY

DA hike expectation: The second instalment of DA hike for the year 2026 is due from July 1, 2026. Calculations based on 7th Pay Commission's formula have indicated a possibility of a 3% hike

da hike suspense 2026

There is no confirmation on the DA hike date yet. | Representational image/AI generated

The suspense over DA hike continues. Central Government employees' wait for dearness allowance raise with effect from July 1, 2026 got longer as Union Cabinet on Wednesday, October 14, again made no announcement related to it.

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In the previous Cabinet meeting also, no decision on DA hike was taken or announced. However, the Cabinet took two important welfare decisions during its Wednesday meet.

This article takes a look at the two key decisions in brief, along with why central government employees are eagerly waiting for the DA hike announcement.

First, PLB for Railway employees
The Union Cabinet approved 78-day Performance-Linked Bonus for Railway employees ahead of Dussehra 2026 on October 20. The maximum amount payable to an eligible railway employee as PLB is ₹17,951 for 78 days. (More details here).
Second, change in names of pension schemes
The Cabinet also decided to rename the national social assistance programme and various pension schemes for old aged, widows and citizens with disability. The new names are PMSSY, PMVPY, PMDPY, PMPLY. The Cabinet has also increased the disability pension amount. (Read more details here)
Why central employees are waiting for DA hike announcement
The second instalment of DA hike for the year 2026 is due from July 1, 2026. Calculations based on 7th Pay Commission's formula have indicated a possibility of a 3% hike in DA for central government employees and dearness relief (DR) for central government pensioners.

The government usually make the second DA hike announcement, along with arrears, of the year during or at the start of the festive season. As the festive season has already entered October and Dussehra on October 20 is getting closer, central government employees are hoping that the DA hike announcement may happen at any time soon.

All eyes will now be on the next Union Cabinet meeting for any DA hike announcement.

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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