look news india
Just before the arrival of major festivals like Dussehra, Diwali and Chhath Puja, the countdown of double good news has started for the serving employees and pensioners of the Central Government. On one hand, the round of meetings and suggestions regarding the 8th Central Pay Commission is progressing rapidly, on the other hand, the Union Cabinet is soon going to approve two major policy decisions to provide relief from rising inflation during the festive season. The first big gift is a 3 percent increase in Dearness Allowance (DA) and Dearness Relief (DR), while the second big announcement is going to be about productivity-based and ad-hoc Diwali Bonus for non-gazetted employees. With this double announcement, bumper cash will reach the pockets of about 49 lakh central employees and more than 65 lakh pensioners of the country before the festivals.
After reviewing the data of last 12 months of All India Consumer Price Index (AICPI-IW), it is believed that the government will reduce the DA rate to be effective from July 2026. 3 percent increase Will do.
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Effective from 1 July 2026: This amendment will be considered effective from July 1. Since there is a strong possibility that it will be paid along with the October salary due to festivals, hence the employees will be paid for the entire month of July, August and September i.e. 3 months outstanding arrears Will be available in lump sum account.
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How much increase in salary?
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Level-1 (Minimum Basic ₹18,000): With an increase of 3%, there will be a direct increase of ₹ 540 every month on the basic salary, which will result in an annual benefit of ₹ 6,480. This time an additional ₹ 1,620 will be added to the account by adding the arrears of 3 months.
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Level-3 (Basic ₹21,700): There will be an increase of ₹ 651 every month and an annual benefit of ₹ 7,812.
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Level-6/7 (Basic ₹35,400 to ₹44,900): Employees working at these levels will get additional increments ranging from ₹1,062 to ₹1,347 per month.
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Relief to pensioners: There will also be a similar 3% increase in pensioners’ dearness relief (DR), giving those with a minimum pension of ₹9,000 a month, an increased benefit of ₹270 and senior pensioners in proportion to their basic pension.
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Apart from the DA hike, the second most awaited announcement is the annual bonus to be received just before Diwali and Durga Puja:
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Productivity Linked Bonus (PLB): Non-gazetted employees of key departments like Indian Railways, Postal Department, Defense Production and EPFO are given a Productivity Linked Bonus equivalent to 78 days’ salary based on their performance and operational record. Like every year, more than 11 lakh Railway employees are expected to get a maximum bonus of about ₹ 17,951.
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Non-PLB / Adhoc Bonus: Group ‘C’ and non-gazetted Group ‘B’ employees of Central Paramilitary Forces (CRPF, BSF, ITBP, CISF) and other Central Ministries are sanctioned Ad-hoc Bonus on the basis of 30 days’ emoluments, with the maximum ceiling limit usually fixed around ₹6,908.
There is still time for the 8th Pay Commission’s framework and recommendations to materialize as the Commission is completing the consultation process with various stakeholders. In such a situation, amidst rising retail inflation, festive expenses and daily necessities, this timely payment of DA increase and bonus will directly increase the purchasing power of the employees. As soon as there is an increase in DA, there will be an automatic increase in the DA component received on the Transport Allowance of the employees, due to which there will be a significant increase in the total in-hand pay in the salary slip for the month of October.
Usually, the central government gives formal approval to the DA and bonus proposals in the Union Cabinet meeting held during the last days of Navratri or just before Vijayadashami (Dussehra). Its draft has already been prepared by the Department of Expenditure of the Finance Ministry. As soon as the Cabinet’s recommendation is received, an official Office Memorandum will be issued by the Ministry of Finance and Department of Personnel (DoPT), after which the process of crediting the arrears and bonus amount in the accounts of the employees will start in the first or second fortnight of October itself.