Hike in Dearness Allowance Announced: Now This State Government Offers a Gift

New Delhi: In April, the Central Government announced a 2 percent hike in Dearness Allowance (DA) and Dearness Relief (DR) for its employees, raising the DA for central government staff to 60 percent. Following the Central Government’s hike in dearness allowance, state governments have now also begun offering similar benefits to their employees. The Government of Arunachal Pradesh has announced a 2 percent increase in Dearness Allowance for serving employees and Dearness Relief for pensioners, in accordance with the 7th Pay Commission recommendations. Arunachal Pradesh made this announcement on May 6.

Financial Burden on the State Government
A statement issued by the Chief Minister’s Office of Arunachal Pradesh noted that the hike in DA and DR will be deemed effective from January 1, 2026. The official statement further clarified that, starting from May 2026, the enhanced Dearness Allowance and Dearness Relief will be disbursed alongside the monthly salaries and pensions. This move is set to benefit 69,248 regular employees and 40,477 pensioners across the state. Consequently, the estimated annual financial burden resulting from this hike is projected to be approximately ₹100.54 crore.

Who Will Benefit from the Dearness Allowance Hike?
Additionally, employees will receive the arrears for the period spanning from January to April, which will be disbursed along with their upcoming salaries. The total financial burden associated with these arrears is estimated to be around ₹33.51 crore. The enhanced Dearness Allowance will be applicable to All India Services officers serving under the Government of Arunachal Pradesh, Central Government employees deputed to the state government, and all regular employees of the state government.

Another State Government Also Announces a Hike
Apart from Arunachal Pradesh, another state government announced a hike in Dearness Allowance in April. The Government of Rajasthan has increased the Dearness Allowance for its state employees and pensioners by 2 percent. This decision by the Rajasthan government is expected to benefit over 1.2 million employees and pensioners. Under the 7th Pay Commission framework, the Dearness Allowance and Dearness Relief have now risen from 58 percent to 60 percent; this decision will be effective from January 1, 2026. This decision by the State Government will benefit approximately 7.02 lakh state employees and 5.44 lakh pensioners. This decision is likely to impose an additional burden of approximately ₹1,156 crore on the State Government.