DA hike before Diwali: Gujarat, Uttarakhand, Arunachal Pradesh raise allowance to 63%

Several state governments have announced increases in Dearness Allowance (DA) for government employees and Dearness Relief (DR) for pensioners ahead of Diwali, providing additional financial relief amid rising living costs.

Gujarat, Uttarakhand, Arunachal Pradesh and Karnataka have revised their allowance rates following the Centre’s decision to increase DA and DR for central government employees and pensioners.

While Gujarat, Uttarakhand and Arunachal Pradesh have raised DA from 60% to 63% of basic pay, Karnataka has increased the allowance for employees covered under its 2024 Revised Pay Scales from 15.75% to 18%.

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Gujarat, Uttarakhand raise DA to 63%

The Gujarat government has approved a three-percentage-point increase in DA, raising the rate from 60% to 63% for eligible state government employees. The revision also benefits pensioners and other eligible beneficiaries under the applicable state rules.

For an employee drawing a basic salary of Rs 30,000 per month, DA at 63% amounts to Rs 18,900, compared with Rs 18,000 at the previous rate. This translates into an additional Rs 900 per month, excluding arrears.

Uttarakhand has also increased DA from 60% to 63%. Approved by Chief Minister Pushkar Singh Dhami, the revision covers eligible state government employees and pensioners, including personnel in local bodies, aided educational institutions, state universities and technical educational institutions, subject to applicable rules.

The revised rates are effective retrospectively from July 1, 2026. Eligible Uttarakhand employees will receive arrears for July to October in cash.

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Arunachal Pradesh raises DA and DR to 63%

The Arunachal Pradesh government has increased DA for employees and DR for pensioners and family pensioners by three percentage points, taking the rate from 60% to 63%.

Chief Minister Pema Khandu announced the decision on November 6, confirming that the revised rates would apply retrospectively from July 1, 2026.

The benefit also covers All India Services officers serving under the state government and central government employees on deputation to Arunachal Pradesh, according to the announcement.

Arrears for July to October will be credited to the salary accounts of serving employees and the pension accounts of eligible pensioners and family pensioners. The revised allowance is scheduled to be paid with the November salary and pension.

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Karnataka increases DA to 18%

The Karnataka government has raised DA for employees covered under its 2024 Revised Pay Scales from 15.75% to 18%, marking an increase of 2.25 percentage points.

Announced on November 5, the revision is effective retrospectively from July 1, 2026. Eligible retired government employees and family pensioners will also benefit under applicable provisions.

Karnataka's rate is based on its own revised pay structure and should not be directly compared with the 63% rates in other states without considering differences in pay scales.