A Pre-Diwali Gift from the State Government: Dearness Allowance for Employees Increased by 3%

Ahead of Diwali, the state government has offered a gift to its employees by increasing their Dearness Allowance (DA) by 3 percent.

Several state governments have recently provided gifts to their employees by increasing their Dearness Allowance ahead of Diwali; Gujarat has now joined this list. Today, November 4, the Gujarat government announced a 3% hike in the Dearness Allowance (DA) for its employees and pensioners. This decision will benefit approximately 9.69 lakh individuals. Arrears for the period from July to October will be disbursed along with the November salary and pension.

The decision was taken during a cabinet meeting chaired by Chief Minister Bhupendra Patel. It will benefit 4.62 lakh serving state government employees and 5.07 lakh pensioners—a total of over 9.69 lakh beneficiaries. The state government’s move follows a similar increase in Dearness Allowance announced by the Central Government.

When will the hike come into effect?

The increase in Dearness Allowance by the Gujarat government will be effective from July 1, 2024. This means that employees and pensioners will receive the enhanced DA starting from July. However, the arrears for the period from July to October will be paid in November. According to the government, the four months' worth of arrears will be disbursed in a single installment along with the November salary and pension.

Who will benefit?

The beneficiaries of this decision include employees working across various departments of the Gujarat government, Panchayat service staff, employees of other state government organizations, as well as pensioners covered under the 6th and 7th Pay Commissions.

What will be the financial impact on the government?

This increase in Dearness Allowance will impose an additional financial burden on the Gujarat government, requiring an extra expenditure of approximately ₹1,569 crore annually. It should be noted that the Gujarat government has taken this decision following the central government's announcement of a 3% hike in the dearness allowance. Prior to this, Madhya Pradesh, Uttar Pradesh, and several other states had also extended this benefit to their employees.