Assam Raises Dearness Allowance to 60%; Here's How the DA Hike Will Boost Salaries and Pensions

DA Hike 2026: The Assam government has approved a fresh increase in Dearness Allowance (DA) and Dearness Relief (DR), taking the rate from 58% to 60%. The move is expected to provide financial relief to more than 8 lakh state government employees and pensioners by increasing their monthly earnings and retirement benefits.

Assam Government Announces Fresh DA and DR Increase

In a major relief for government employees and retired personnel, the Assam Cabinet has approved a 2% increase in Dearness Allowance and Dearness Relief. With this decision, the DA and DR rates have been revised from 58% to 60%, effective immediately.

The announcement was made following the first cabinet meeting after the recent expansion of the state ministry. The meeting was chaired by Chief Minister Himanta Biswa Sarma, who confirmed that the revised rates would benefit serving employees, pensioners, family pensioners, extraordinary pension beneficiaries, and compassionate family pension recipients.

What Does the DA Increase Mean for Employees?

Dearness Allowance is provided to government employees to help offset the impact of rising inflation on their income. When DA rates are increased, employees receive a higher amount in addition to their basic salary.

With the latest revision, state government workers in Assam will see an increase in their take-home pay. Although the exact amount will vary depending on an employee's basic salary, the hike will provide additional monthly income and improve overall financial stability.

For example, if an employee has a basic salary of ₹40,000, a 2% DA increase could add around ₹800 per month to the salary package before considering other components.

Pensioners Also Set to Benefit

The decision is equally significant for retired government employees. Dearness Relief (DR), which is the pension equivalent of DA, has also been raised to 60%.

As a result, pensioners and family pension beneficiaries will receive higher monthly pension payouts. This increase is intended to help retirees manage rising living expenses and inflationary pressures.

Part of a Larger Trend Following Central Government Action

The Assam government's move comes shortly after the central government approved a 2% increase in Dearness Allowance and Dearness Relief for central government employees and pensioners earlier this year.

That revision was made effective from January 2026 and encouraged several state governments to review their own DA structures. Assam is among the latest states to announce a similar enhancement for its workforce and retired employees.

Other Key Decisions Taken During the Cabinet Meeting

Apart from the DA and DR hike, the Assam Cabinet approved several important administrative and development-related proposals.

Higher MLA Development Fund Allocation

The government has decided to increase the allocation under the MLA Local Area Development Fund.

• For FY 2026-27, the allocation per MLA will rise from ₹1 crore to ₹1.5 crore.

• From FY 2027-28 onwards, the amount will be further increased to ₹2 crore.

The enhanced allocation is expected to support local infrastructure and development projects across constituencies.

Dibrugarh Declared Second State Capital Region

The Cabinet also approved a proposal to designate Dibrugarh as the state's Second Capital Region Area.

To support this initiative, the government will establish the Second State Capital Region Development Authority, aimed at planned urban development around the Dibrugarh Capital Complex. The designated region will cover areas within a 20-kilometre radius of the complex.

Promotion Path for School Employees

Another significant decision involves amendments to the Assam Secondary Education (Provincialised Schools) Service Rules, 2026.

The changes are intended to streamline the promotion process for serving Grade IV employees, enabling eligible staff members to move to Grade III positions through a regulated and transparent system.

Impact of the DA Revision

The latest increase in DA and DR is expected to strengthen the purchasing power of employees and pensioners while providing relief from inflation. For thousands of households dependent on government salaries and pensions, the revised rates will result in higher monthly income and improved financial support.

As more states review employee benefits following the central government's decision, further announcements on DA revisions may be expected in the coming months.

Disclaimer: Salary and pension increases may vary based on an individual's basic pay, service category, and applicable government rules. Employees and pensioners should refer to official notifications for exact calculations and implementation details.