Ahead of the Diwali festival, several Indian state governments have announced significant increases in Dearness Allowance (DA) for their employees and Dearness Relief (DR) for pensioners. Gujarat, Uttarakhand, and Arunachal Pradesh have all revised their allowance rates, following a similar move by the central government.
Three States Boost DA to 63%
Gujarat, Uttarakhand, and Arunachal Pradesh have each approved a three-percentage-point increase in DA, raising the rate from 60% to 63% of basic pay. This revision is a welcome financial boost for eligible state government employees, pensioners, and other beneficiaries under applicable state rules.
Retroactive Effect and Arrears
The revised rates for these three states are effective retrospectively from July 1, 2026. This means employees and pensioners will receive arrears for the period of July to October. For example, in Gujarat, an employee with a basic salary of Rs 30,000 per month will see their DA increase from Rs 18,000 to Rs 18,900, an additional Rs 900 per month, excluding arrears.
- Gujarat: Approved a 3% increase, raising DA from 60% to 63%. Benefits state government employees and pensioners.
- Uttarakhand: Chief Minister Pushkar Singh Dhami approved a 3% increase, applying to state government employees, pensioners, personnel in local bodies, aided educational institutions, and state universities. Arrears for July-October will be paid in cash.
- Arunachal Pradesh: Chief Minister Pema Khandu announced a 3% increase in DA and DR to 63%. This also covers All India Services officers and central government employees on deputation to the state. Arrears will be credited to salary and pension accounts.
Karnataka Also Increases Allowance
In a related development, the Karnataka government has also announced an increase in Dearness Allowance for its employees. For those covered under its 2024 Revised Pay Scales, DA has been raised from 15.75% to 18%, marking an increase of 2.25 percentage points. This revision, announced on November 5, is also effective retrospectively from July 1, 2026, benefiting eligible retired government employees and family pensioners.
It is important to note that Karnataka's allowance rate is based on its specific pay structure and should not be directly compared with the 63% rates in other states without considering the differences in basic pay scales.