DA Hike: Before Diwali, along with the Central Government, the governments of UP, Karnataka, Bihar and Rajasthan have also given big relief to the employees and pensioners. The Central Government has recently increased Dearness Allowance (DA) and Dearness Relief (DR) by 3%. The DA rate of central employees and pensioners has increased from 55% to 58%. This increase is considered effective from July 1, 2025. Like the Central Government, State Governments are also increasing the DA of their employees.
States also implemented the decision
Soon after the Centre’s decision, the governments of Bihar and Rajasthan also announced increase in DA for their employees. Now UP and Karnataka governments have also increased the DA of employees.
1. UP Government
The Uttar Pradesh government has announced big relief for the employees and pensioners of the state. The government has decided to increase the Dearness Allowance (DA) by 3%, due to which it will now increase from 55% to 58%. This increase will be effective from July 1, 2025 and about 28 lakh employees and pensioners will benefit from it. According to the government, this decision will put an additional burden of approximately Rs 1,960 crore on the state exchequer by March 2026. The Chief Minister has directed that the increased allowance should be given in cash from this month itself.
2. Bihar Government
The 3% increase was approved in the cabinet meeting held on October 3. Now all the government employees, pensioners and family pensioners of Bihar will get DA at the rate of 58%. This will also come into effect from July 1, 2025.
3. Government of Rajasthan
Chief Minister Bhajanlal Sharma approved this increase on Friday. Now Rajasthan government employees will also get 58% DA.
4. Government of Karnataka
Karnataka government has given big relief to its employees and pensioners before Diwali. The government has increased the Dearness Allowance (DA) from 12.25% to 14.25%. This new rate will be applicable from July 1, 2025. Both the existing employees of the state and pensioners will benefit from this. According to the order of the Finance Department, this is the second DA increase in this financial year. Earlier in May, DA was increased from 10.75% to 12.25%.
5. Arunachal Pradesh
DA has been increased similarly in other states of the country also. A few days ago, the Arunachal Pradesh government had increased the DA by 3% for its employees and pensioners, increasing the DA from 55% to 58%. This change is also effective from July 1. Chief Minister Pema Khandu said that this decision will benefit thousands of employees and retired people.
Central government increased DA
The central government has increased DA by 3% on October 1. In the cabinet meeting chaired by Prime Minister Narendra Modi, DA was increased from 55% to 58%. This will benefit approximately 49 lakh central government employees and 69 lakh pensioners. Its annual financial burden on the government will be around ₹10,084 crore.
What is DA (Dearness Allowance)?
DA is given by the government to employees and pensioners to provide relief from the impact of inflation. It is calculated on the basis of Consumer Price Index (CPI-IW), which is released every month by the Labor Bureau.
Why is DA increase important?
DA i.e. Dearness Allowance is an important part of the salary of government employees, which helps in balancing the effect of inflation. This rate is decided on the basis of All India Consumer Price Index (AICPI). Revision in DA is done twice a year in January and July.
IRCTC website-app stalled before Diwali, passengers faced problem in ticket booking