DA hike delay sparks concern: Employees’ bodies urge FM Sitharaman for quick announcement

The record delay in dearness allowance (DA) and dearness relief (DR) announcements has got employees and pensioners feeling anxious. Now the Confederation of Central Govt Employees & Workers and All India NPS Employees Federation have written to Finance Minister Nirmala Sitharaman, urging her to step in and announce the DA and DR hike as soon as possible.

SB Yadav, secretary general, Confederation of central govt employees & workers, in a letter dated April 8, 2026, wrote to the Finance Minister: “The Confederation of Central Government Employees and Workers would like to draw your kind attention towards the non-declaration of due instalments of DA/DR, w.e.f, January 1, 2026, normally it used to be declared in the last week of March and arrears of the three months paid in the first week of April every year.”

The confederation further wrote that because of the delay in announcing the DA hike, there’s severe discontent and apprehension among the employees and pensioners.

“The confederation beseeches your personal intervention in the matter and request to you to kindly cause the declaration/issuance of DA/DR orders at the earliest,” the confederation requested.

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Read more at: DA hike delay: Will government skip it or just postpone it? Experts weigh in

Manjeet Singh Patel, president, All India NPS Employees Federation, wrote to the Finance Minister that the non-announcement of the DA hike has become a cause for deep disappointment and frustration among employees.

"Due to this delay, apprehensions are also arising among employees that, similar to the COVID period, the Dearness Allowance might again be frozen this time. Such concerns are adversely affecting the morale of employees," wrote Patel in the letter dated April 9, 2026.

Patel requested to consider the sentiments and interests of employees and to release the increase in DA from January 2026 with immediate effect.


DA hike official order dates (from 2016-now)

Source: Ministry of Finance

If we look at the DA hike orders in the last decade, it has never been announced so late, barring the COVID-19 pandemic when the government froze DA and DR for 18 months, between October 14, 2029, and July 20, 2021. Even when the government announces the DA hike, it issues an official letter a few days later. However, employees and pensioners get arrears for the delayed period also.

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At present, both DA and DR for central government employees and pensioners, respectively, stand at 58%.

As per the All India Consumer Price Index-Industrial Workers (AICPI-IW) 12-month average reading from January 2025-December 2025, DA is set to rise by 2% for January 2026. However, the real magnitude of it will be known only when the government announces it.

The government hikes DA twice a year- once in January and July. However, the announcement of the hike is not in the same month. The government mostly announces the hikes ahead of a festival such as Holi or Diwali. However, that is not a mandate as the government many times has announced the DA hike after these festivals. Like in 2025, the government announced the DA hike on March 28, 14 days after Holi.

What can be the reason for the DA hike delay announcement?

Adhil Shetty, CEO, Bankbazaar.com, told ET Wealth Online the DA hike delay does not indicate any shift in the government’s policy.

According to Shetty, approval cycles and administrative sequencing, particularly alongside the transition to the 8th Pay Commission, may have pushed the announcement slightly.