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) |