Unrest Grows as 3rd Cabinet Meeting Passes Without DA Hike Decision Ahead of Diwali

• by Akanksha Mishra
• 2026-10-22 15:27:00

In what has triggered widespread frustration among more than one crore central government employees and pensioners across India, the Union Cabinet concluded its high-level meeting on Wednesday, October 21, 2026, without issuing the long-anticipated notification on the Dearness Allowance (DA) and Dearness Relief (DR) revision. Traditionally cleared prior to the Dussehra festivities to ensure festive financial liquidity, the biannual allowance adjustment has now bypassed three consecutive Cabinet sittings. Employee federations across ministries, defense units, railways, and postal services have voiced acute resentment over the prolonged silence, reiterating that the inflation-linked adjustment due from July 1, 2026, is an earned statutory entitlement rather than administrative charity, and have formally petitioned Prime Minister Narendra Modi for an immediate executive sign-off before Diwali.

Five-Year Historical Trajectory: How DA and DR Have Grown Over Past Cycles

Central dearness allowances have tracked a steady upward trajectory to offset retail inflation pressures across successive revisions:

Federation Pushback: All India NPS Employees Union Pleads for Direct PM Intervention

Employee unions and service associations have expressed disappointment regarding the missing festive clearance:

Three Consecutive Cabinet Deferrals: Dr. Manjeet Singh Patel, National President of the All India NPS Employees Federation, highlighted that three consecutive Union Cabinet meetings took place without taking up the pending DA-DR agenda.

Disruption to Festive Pay: Under established precedent, the enhanced allowance along with accrued arrears from July, August, and September is disbursed alongside the October salary, giving families essential disposable income ahead of Diwali.

Firm Stance on Rights: Dr. Patel emphasized the statutory nature of the compensation, stating firmly that the pending 3 to 4 percent hike from July 2026 is an earned compensation benchmark to offset the rising cost of living, urging the Prime Minister’s Office (PMO) to intervene and release the funds without further administrative delay.

Expected Figures: Will Total Dearness Allowance Reach 63% or 64%?

Calculations based on the 12-month average of the All India Consumer Price Index for Industrial Workers (AICPI-IW) point to a standard upward revision:

The 3% vs. 4% Scenarios: Based on consumer price index fluctuations over the preceding fiscal year, the pending increase is projected to settle between 3% and 4%.

Projected Total DA: An approved 3% hike will raise total central DA from the existing 60% to 63%, whereas a 4% increase would take the cumulative allowance to 64% of basic pay.

Arrears from July 1: Regardless of the announcement date, the revision will carry retrospective effect from July 1, 2026, guaranteeing three months of accumulated arrears along with the revised monthly payout.

Contrast in the States: Kerala Government Orders 2% DA Hike with October Salary

While central government staff continue their wait, state administrations have initiated their own festive rollouts:

Official 2% Increase in Kerala: The Government of Kerala has notified an immediate 2% increase in dearness allowance for its workforce and pensioners, taking state DA levels from 35% to 37%.

Disbursement Timeline: The Kerala Finance Department confirmed that the revised allowance, applicable retrospectively from January 1, 2026, will be credited directly into bank accounts in November alongside the October salary, providing festive relief to state personnel.

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