2% DA Hike: Good News for Employees – Odisha, UP, Rajasthan and Centre Approve Increased Dearness Allowance from January 2025

In a welcome move for government employees and pensioners, several state governments including Odisha, Uttar Pradesh, Rajasthan, and the Central Government have approved a 2% hike in Dearness Allowance (DA). This hike, effective from January 1, 2025, raises the DA from 53% to 55%, providing significant financial relief to millions.

📍 Odisha: 8.5 Lakh Employees & Pensioners to Benefit

On Friday, Odisha Chief Minister Mohan Charan Majhi announced a 2% DA hike for state government employees and pensioners, increasing DA from 53% to 55%. Key details include:

• Effective Date: January 1, 2025 (retrospective)

• Payment Mode: Cash with April 2025 salary

• Beneficiaries: ~8.5 lakh employees and pensioners

📍 Uttar Pradesh: 16 Lakh Employees Covered

The UP Government also approved a 2% DA hike, aligning with the Central Government’s decision. The updated DA will also be effective from January 1, 2025. Key highlights:

• DA Increased: 53% → 55%

• Beneficiaries: ~16 lakh employees

• Purpose: Aligning with 7th Pay Commission policies

📍 Rajasthan: DA + GPF Benefit

The Rajasthan Government has similarly hiked the DA by 2% for state employees and pensioners, benefiting 12.4 lakh people. Unique provisions include:

• Effective from: January 1, 2025

• Cash Payment: From April 2025 salary (paid in May)

• Arrears (Jan–Mar): Deposited in GPF accounts

🏛️ Central Government: Over 1 Crore Employees Covered

Earlier, the Central Government also approved a 2% DA hike under the 7th Pay Commission norms:

• Revised DA: 53% → 55%

• Effective Date: January 1, 2025

• Pensioners Included: Yes

• Beneficiaries: Over 1 crore employees and pensioners

💡 Summary of DA Hike Across India

Region	DA Increase	Effective From	Beneficiaries
Central Govt	2% (53→55%)	Jan 1, 2025	1+ crore
Odisha	2%	Jan 1, 2025	8.5 lakh
Uttar Pradesh	2%	Jan 1, 2025	16 lakh
Rajasthan	2%	Jan 1, 2025	12.4 lakh (GPF benefit)