DA Hike: Chief Minister Bhajanlal Sharma has announced a two percent increase in the dearness allowance (DA) for state employees for the financial year 2025-26. This adjustment will also apply to pensioners. The decision is in line with a recent move by the Central Government to raise the DA for central employees.
On Tuesday, Chief Minister Sharma approved the Finance Department’s proposal to implement this increase. Consequently, the dearness allowance for state employees and pensioners under the seventh pay scale will rise from 53 percent to 55 percent, effective January 1, 2025.
This change is expected to benefit approximately eight lakh employees and 4.40 lakh pensioners, including those working in Panchayat Samiti and Zila Parishad. The increased dearness allowance will be disbursed in cash, starting with the salary for April 2025, which will be paid out in May 2025.
Additionally, the amount corresponding to the three-month period from January 1 to March 31, 2025, will be credited to the General Provident Fund accounts of the respective employees. Pensioners will also receive their dearness relief in cash beginning January 1, 2025. This decision is projected to impose an annual financial burden of approximately Rs 820 crore on the state government.
In March, the Central Government had also raised the dearness allowance
With this increase, the DA for state employees now matches that of central employees. Earlier in March, the Central Government had also raised the dearness allowance for its employees and pensioners by 2%, bringing their DA to 55%. The new rates will be effective from January 2025, meaning that arrears for January and February will also be provided. The enhanced DA will be disbursed in cash starting in April.
It’s important to note that in October 2024, the Bhajanlal government had previously raised the dearness allowance for employees and pensioners under the 7th Pay Commission by 3%, increasing it from 50% to 53%. Additionally, in December 2024, the DA and relief for those on the fifth and sixth pay scales were increased by 7% to 12%, further benefiting employees under the Sixth Pay Commission.