DA HIKE 2025: Dearness allowance hiked for lakhs of employees and pensioners before Diwali, arrears to be paid too
Following the central government’s increase in dearness allowance, states have now begun increasing dearness allowances for their employees and pensioners. Several states, including Rajasthan, Bihar, and Gujarat, have already received their DA increases, although employees in Madhya Pradesh, Uttar Pradesh, and Haryana are still awaiting their DA.
Government Employees DA Hike: Before Diwali, the Modi government at the center revised the rates of dearness allowance and dearness relief for central employees and pensioners, increasing them by 3%, increasing the DA from 55% to 58%. The new rates will be effective from July 1, 2025, and arrears for July, August, and September will also be paid. This increase will benefit 49.19 lakh employees and 68.72 lakh pensioners. This increase is in accordance with the approved formula, which is based on the recommendations of the Seventh Central Pay Commission. Additionally, the central government has increased the DA by 5% for employees under the Sixth Central Pay Commission, increasing the DA from 252% to 257%. Dearness Allowance (DA) for employees under the Fifth Pay Commission has been increased by 8%, increasing the DA from 466% to 474%. The new rates will be effective from July 2025, and arrears for July, August, and September will also be paid.
Till now the dearness allowance of these states has increased
Sikkim DA Hike 2025: Before Diwali, the Prem Singh Tamang government in Sikkim has increased dearness allowance by 2% to 6%, giving a gift to state employees and pensioners receiving benefits under the 7th and 6th Pay Commissions. Following this increase, employees and pensioners receiving salaries under the revised basic pay structure will receive an additional 2% DA and DR, increasing the DA rate from 53% to 55%. The 6% increase in DA for employees and pensioners receiving salaries under the pre-revised basic pay structure has increased their DA and DR by 246% to 252%. This increase will be effective January 1, 2025, and arrears will be available from January to September 2025. Employees appointed on contract basis and those in work-charged establishments receiving revised salaries under the regular pay scale will also benefit.
Gujarat DA Hike 2025: The Bhupendra Patel government of Gujarat has decided to increase the dearness allowance by 3% (from 55% to 58%) for the employees benefiting from the 7th Pay Commission and by 5% for the employees benefiting from the 6th Pay Commission. The employees will get the benefit of the increase in dearness allowance on central basis from July 1, 2025. The difference in this dearness allowance for 3 months i.e. from July 1, 2025 to September 30, 2025 will be paid in one installment. This decision taken in the larger interest of the employees before Diwali will benefit a total of 4.69 lakh Karmayogis, Panchayat Sevaks and others of the state government and about 4.82 lakh retired employees.
Bihar DA Hike 2025: Nitish Kumar government of Bihar has decided to increase dearness allowance by 3 percent for its government employees and pensioners, after which the rate of DA has increased from 55 percent to 58 percent. The new rates will be applicable from July 2025, hence arrears for July, August and September will also be given. This decision will put an additional burden of Rs 917 crore on the state treasury, and its benefits will be accrued to 6 lakh employees and 4 lakh pensioners. This is being considered a major masterstroke of the state government before the Bihar assembly elections.
Rajasthan DA Hike : Giving a big gift to the employees and pensioners covered under the 7th Pay Commission, the Bhajan Lal government of Rajasthan has increased the dearness allowance and relief by 3%. Now, under the 7th Pay Commission in the state, the dearness allowance or dearness relief payable to the state employees and pensioners will be increased from 55 percent to 58 percent from July 1, 2025. Around 8 lakh employees and 4.40 lakh pensioners will benefit from this decision. The employees of Panchayat Samiti and Zila Parishad will also get the benefit of this hike. The new rates will be applicable from July 2025, hence the arrears of July, August and September will be given. The benefit of the increased DA will be given in the month of November along with the salary of October.
Odisha DA Hike: The Mohan Charan Majhi government in Odisha has announced a 2 percent increase in dearness allowance and dearness relief for its employees and pensioners, increasing their dearness allowance from 53 percent to 55 percent. This increase will be effective from January 1, 2025, and will also cover arrears from January to August 2025. This will benefit 8.5 lakh employees and pensioners.
Tripura DA Hike: Manik Saha government of Tripura has also increased the dearness allowance and dearness relief of its employees and pensioners by 3%, after which the DA has increased from 33% to 36%. The new rates will be applicable from October 2025, hence the amount will increase in the account from November. More than 1.5 lakh government employees and 84,000 pensioners will get its benefit. It may be noted that the 7th Central Pay Commission (CPC) was implemented in the state from October 1, 2018. So far, 33% DA and DR have been released to the state government employees and pensioners in six installments.
Dearness allowance is increased twice a year
The Central Government revises the rates of dearness allowance and dearness relief for central employees and pensioners twice every year, in January and July, keeping in view the inflation rate. These rates depend on the half-yearly data of the All India Consumer Price Index, which is released between January and June and July to December every year. After the Centre, the State Governments revise the rates of dearness allowance and dearness relief for their employees and pensioners.
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