The Rajasthan government has raised dearness allowance (DA) by 3% for its employees and pensioners ahead of Diwali, according to a Mint report. The move came after the Centre announced a similar 3% increase for its own staff and retirees. Several other states have also announced hikes in the days around the festival.
Key points
- Rajasthan and Tamil Nadu have each raised DA by 3% for state employees and pensioners.
- Himachal Pradesh announced a 5% hike, while Chhattisgarh, Madhya Pradesh and Keralam announced 2% each.
- The Centre raised DA by 3%, from 60% to 63% of basic pay, effective from 1 July.
- The Centre's announcement was made by the Finance Ministry on 28 October.
What the states have announced
Mint reports that some states have announced increases ranging from 2% to 5% for state government employees, pensioners, teachers and other staff. Himachal Pradesh gave the highest increase at 5%. Rajasthan and Tamil Nadu each announced 3%. Chhattisgarh, Madhya Pradesh and Keralam each announced 2%.
The report does not give details on how many Rajasthan employees and pensioners will benefit, or from which date the new rate applies in the state.
The Centre's decision and how DA works
The Union Cabinet raised DA for central government employees and pensioners by 3%, taking it from 60% to 63% of basic pay. The increase is effective from 1 July and follows the recommendations of the 7th Central Pay Commission. Mint describes it as a "Diwali gift" and notes that it is the second increase this year. In April, the Centre had raised DA by 2%, from 58% to 60%, effective from 1 January.
DA is a percentage of an employee's basic pay. It is meant to reduce the effect of rising living costs and inflation. Under the 7th Pay Commission, it is revised twice a year using data from the All-India Consumer Price Index. Announcements usually come in March and October, and the changes are applied from January and July.
Who benefits
According to the report, more than one crore people gain from DA and dearness relief (DR) hikes at the central level. This includes about 50 lakh central government employees and nearly 65 lakh pensioners, among them defence and railway personnel and retirees.
After the Centre's April announcement, the Indian Banks' Association revised DA and DR for bank employees for May, June and July 2026. Indian Railways also announced a 2% hike for staff and pensioners. Mint adds that several states followed the earlier round of hikes, including Telangana, Sikkim, Punjab, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Maharashtra, Odisha, Uttar Pradesh and West Bengal.
For government staff and pensioners in Rajasthan, the 3% increase means a higher monthly payment as the cost of living rises, in line with the Centre's revision.
