Summary of this article
Punjab reviews pending DA dues and arrears payments
West Bengal may announce DA decision in Budget
Himachal Pradesh examines DA and pension arrears
Dearness Allowance Hike Updates: Talks around dearness allowance (DA) have come under focus in Punjab, West Bengal and Himachal Pradesh, with all three state governments looking into issues related to pending dues, arrears and future payments for state government employees and pensioners.
DA is paid to government employees, public sector workers, defence personnel and pensioners to help offset the impact of inflation. It is revised twice a year based on movements in the All-India Consumer Price Index (AICPI). Announcements are generally made in March and October, with the revised rates taking effect from January and July, respectively.
Punjab Reviews Pending DA And Arrears
The Punjab government had announced on May 30, 2026 that it would consider the payment of pending DA and dearness relief (DR) dues to state government employees and pensioners for the period from July 1, 2021, to March 31, 2024.
The state government also announced the formation of a sub-committee to examine arrears linked to revised salaries and pensions for the period between January 1, 2016, and June 30, 2021. The committee will study the issue and discuss the modalities for payment.
West Bengal To Announce DA Decision In Budget
In West Bengal, the state government is expected to make an announcement on DA for employees and pensioners during the state Budget presentation on June 22.
The government has also said that DA arrears for the period between 2016 and 2019 have already been paid to nearly 300,000 employees and pensioners. Discussions around the implementation of pending DA-related obligations have continued in the state in recent months.
Himachal Pradesh Examines Pending Dues
The Himachal Pradesh government is also reviewing DA and pension arrears for state employees and pensioners.
Chief Minister Sukhvinder Singh Sukhu has recently mentioned that the state finance department had been directed to withdraw a notice related to salary deferment and release pending pension arrears. The state government has indicated that employee welfare and settlement of pending dues remain under consideration.
Centre Raised DA By 2 Per Cent
The developments in the states come after the Ministry of Finance increased DA and DR by 2 per cent with effect from January 1, 2026. The revision raised the DA rate from 58 per cent to 60 per cent of basic pay, benefiting around five million central government employees and about 6.50 million pensioners.
Subsequently, the Indian Banks’ Association revised DA and DR for bank employees for May, June and July 2026, while the Railway Board also approved a 2 per cent increase in DA and DR for railway employees and pensioners covered under the Seventh Pay Commission.
Focus Turns To July Revision
With inflation remaining elevated, employees and pensioners are closely watching for the next round of DA revisions. Wholesale inflation rose to 9.68 per cent in May from 8.26 per cent in April, while retail inflation stood at 3.48 per cent and food inflation at 4.20 per cent.
