DA hike arrears: When will employees and pensioners receive the extra money?

The latest dearness allowance (DA) increases announced by the Centre and several state governments have raised an important question for government employees and pensioners: when will the additional money reach their accounts, and how will pending arrears be paid?

The Union Cabinet approved a 3-percentage-point increase in DA and dearness relief (DR) in October, taking the rates for central government employees and pensioners from 60% to 63% of basic pay. The revision is effective from 1 July 2026 and is expected to benefit more than one crore employees and pensioners.

Several state governments also announced DA increases ahead of Diwali and Chhath Puja. However, the effective dates, payment schedules and arrangements for arrears are not uniform across states.

Centre raises DA and DR to 63%

The Centre announced a 3-percentage-point increase in DA for employees and DR for pensioners on 28 October. The revised rate of 63% is applicable from 1 July 2026.

The increase is expected to benefit around 50 lakh central government employees and approximately 65 lakh pensioners, including defence and railway personnel and retirees.

This is the second DA revision announced by the Centre in 2026 under the 7th Central Pay Commission framework. In April, the government had raised DA by 2 percentage points, from 58% to 60%, with effect from 1 January 2026.

What are DA arrears and how are they calculated?

DA arrears refer to the additional amount payable for the period between the effective date of an allowance revision and the date on which the revised payment actually begins.

For example, if a government announces a DA increase effective from July but starts paying the revised allowance with the November salary, eligible employees may receive the difference for the intervening months as arrears.

The amount depends on the employee's basic pay, the revised DA rate and the number of months covered by the arrears payment. Pensioners receive the corresponding difference in dearness relief.

However, arrears are not automatically payable in every case. The government concerned must specify the payment arrangement and the period covered.

Punjab: Revised DA to reflect in December payments

The Punjab government has announced a 3-percentage-point increase in DA for state government employees and pensioners, taking the rate from 50% to 53%.

Chief Minister Bhagwant Mann said the decision would benefit around eight lakh people. The revised allowance will be reflected in salaries and pensions paid in December, according to a PTI report.

The increase is effective from 1 November 2026.

Arunachal Pradesh: Four months of arrears to be paid in cash

Arunachal Pradesh has raised DA and DR by three percentage points, from 60% to 63%, with effect from 1 July 2026.

Chief Minister Pema Khandu announced that the revised allowance would benefit state government employees and pensioners, as well as All India Services officers serving in the state and central government employees on deputation there.

The enhanced DA and DR will be paid along with the November salary and pension.

The government has also announced cash payment of arrears for the four-month period from July to October. The amount will be credited directly to the salary accounts of serving employees and the pension accounts of pensioners and family pensioners.

Uttarakhand: DA arrears to be paid in cash

Uttarakhand has also approved a 3-percentage-point DA increase, taking the allowance to 63% of basic pay with effect from 1 July 2026.

The state government said the decision would bring the DA rate for its employees in line with that of central government employees.

The difference for the period from 1 July to 31 October 2026 will be paid in cash to eligible employees, according to a statement from Chief Minister Pushkar Singh Dhami's Office.

Uttar Pradesh: Revised DA with November salary, arrears through PF

Uttar Pradesh has increased DA by three percentage points, from 60% to 63% of basic pay, with effect from 1 July 2026.

According to a PTI report, the increased DA for October will be paid along with employees' November salaries.

An ANI report said that arrears for the preceding period would be deposited separately into employees' provident fund accounts.

The payment arrangement means employees will receive the revised monthly allowance through their salary, while the pending amount will be credited to their PF accounts rather than paid directly in cash.

Several other state governments also revised DA and DR rates ahead of the festive season.

Chhattisgarh, Kerala and Madhya Pradesh announced increases of two percentage points each. Karnataka approved a 2.5-percentage-point hike.

Arunachal Pradesh, Bihar, Gujarat, Punjab, Rajasthan, Tamil Nadu and Uttarakhand announced increases of three percentage points each, while Himachal Pradesh approved a five-percentage-point increase.

The payment dates and arrears arrangements vary, and employees will need to refer to the respective state government orders for the applicable details.