AIDEF urges immediate DA increase and threefold boost to bonus ceiling for central staff

The All India Defence Employees Federation (AIDEF) sent a letter on October 10, 2026 to the cabinet secretary, finance ministry and several departmental secretaries, highlighting a deepening financial crisis among central government employees and pensioners due to soaring essential-commodity prices. It pressed the government to announce the DA/DR applicable from July 1, 2026 without further delay, noting that one outlet DA stands at 60% and could rise to about 63% based on June AICPI-IW data.

AIDEF also demanded that the performance-linked bonus ceiling be increased from Rs 7,000 to Rs 21,000, arguing that the ceiling should not be lower than the minimum basic salary set by the 7th Pay Commission. The federation referenced the Payment of Bonus Act, 1965 and the Code on Wages, 2019, as the statutory framework governing the bonus. It indicated that the finance ministry has sought clarification from the Ministry of Labour and Employment on the appropriate minimum wage basis for the new ceiling, requesting the revised limit to apply from FY 2025-26, which would raise the estimated bonus from roughly Rs 6,908 to Rs 20,724.