Acting on the directives of Chief Minister Bhajan Lal Sharma, the State government has sanctioned a 2% rise in Dearness Allowance (DA) and Dearness Relief (DR) for state employees and pensioners. This adjustment elevates the Dearness Allowance under the 7th Pay Commission from 58% to 60%, effective from January 1, 2026.
Approximately 7.02 lakh employees and 5.44 lakh pensioners in the state are expected to benefit from this decision. The enhancement also extends to employees of Panchayat Samitis and Zila Parishads.
State employees will receive the revised Dearness Allowance in cash along with their May 2026 salary, to be paid in June 2026, as per the order. Moreover, arrears from January 1 to April 30, 2026, will be credited to the employees’ General Provident Fund (GPF) accounts.
Pensioners, on the other hand, will receive the increased Dearness Relief in cash, effective from January 1, 2026, ensuring immediate financial relief. The decision underscores the State government’s commitment to safeguarding the financial interests and welfare of its employees and pensioners amidst rising living costs.
By adjusting the Dearness Allowance, the government aims to alleviate the impact of inflation and support household expenses. This increment will impose an additional annual financial burden of around Rs 1,156 crore on the State exchequer. Despite the fiscal implications, the government has prioritized employee welfare and timely financial assistance.
The Union Cabinet had previously approved a 2% increase in Dearness Allowance and Dearness Relief, raising it from 58% to 60%, effective from January 1. This revision is anticipated to benefit over 1.17 crore individuals and cost the government Rs 6,791 crore annually. The hike will particularly aid about 49.19 lakh central government employees and 68.72 lakh pensioners. Since the revised rate is retroactive to January 1, both groups will receive arrears for the preceding months.
