Now Reading: Cabinet hikes dearness allowance by 3% ahead of Diwali
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Cabinet hikes dearness allowance by 3% ahead of Diwali
The Story in Brief
The Union Cabinet on Wednesday, 28 October 2026 approved a 3% hike in Dearness Allowance (DA) for central government employees and pensioners, effective from 1 July 2026. The DA rate rises from 60% to 63% of basic pay, following the 7th Pay Commission formula. The government allocated Rs 10,016 crore for the hike, part of a broader Rs 29,267 crore approval for development schemes.
Separately, the Department of Public Enterprises under the Ministry of Finance revised Industrial Dearness Allowance (IDA) rates for executives and non-unionised supervisors in Central Public Sector Enterprises, effective 1 October 2026. Under the 2017 pay scale, the IDA rate is 59.1%. Rates for the 2007 and 1997 pay scales are 249.2% and 489.5% respectively. Employees under the 1987 pay scale receive a fixed amount of Rs 18,728.
Indian Opinion Analysis
Economic Times covers the Cabinet's DA hike as a Diwali bonanza, foregrounding the Rs 10,016 crore allocation and the 3% rise. Livemint reports a separate IDA revision for CPSE employees, focusing on percentage rates across pay scales and the fixed amount under the 1987 scale. The two stories are about different sets of beneficiaries: central government staff versus CPSE executives. There is no conflict between them. The key next step is for CPSE employees to check their applicable pay scale and revised allowance with their payroll department.
Coverage: 2 sources, 2 neutral
Sources (2): economictimes.indiatimes.com (neutral report), livemint.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
