DA Hike Announced! This state Government Raises Dearness Allowance to 55% – Big Relief for Employees and Pensioners

Guwahati, April 4, 2025 – There’s good news for government employees and pensioners in Assam. The state government has officially approved a 2% increase in the Dearness Allowance (DA), bringing the total to 55%. This move mirrors a recent decision by the central government and aims to ease the burden of inflation for lakhs of public sector workers.

Assam’s Chief Minister Himanta Biswa Sarma announced the hike, calling it a special “Bihu Gift” for state employees. The revised DA will be effective from January 1, 2025, and will apply to both current government staff and retired pensioners receiving Dearness Relief (DR).

What This Means for Employees

With this change, Assam’s DA rate climbs from 53% to 55%, directly increasing the take-home pay of state employees. Chief Minister Sarma confirmed that the revised DA will be disbursed with the upcoming salary, and any arrears for the months of January to March will be paid out with the April and May salaries.

This increase is expected to benefit lakhs of employees and pensioners, offering them much-needed relief as the cost of living continues to rise across the country.

Uttar Pradesh Follows Suit

Following Assam’s footsteps, the Uttar Pradesh government is also preparing to implement a 2% hike in DA for its employees. Once approved by Chief Minister Yogi Adityanath, the hike will increase DA in UP from 53% to 55%, matching the new rate in Assam.

The revised allowance in UP will be added to the April salary, which employees will receive in May 2025. The move is set to benefit around 16 lakh government employees and 12 lakh pensioners in the state.

To simplify the payment of arrears, the UP government is planning to deposit the dues from previous months into employees’ Provident Fund (PF) accounts and through National Savings Certificates (NSCs), providing both immediate support and long-term financial security.

Part of a Larger National Policy

This wave of DA hikes across Indian states is part of a broader trend sparked by the Central Government’s decision to increase DA by 2% earlier this year. State governments are now aligning with this policy, aiming to offset the financial strain caused by inflation.

For employees, this translates to an increase in purchasing power and more financial cushioning against rising prices of essential goods and services. For pensioners, the Dearness Relief increase will help them manage daily expenses more comfortably, especially in a time of economic volatility.

Boost to the Economy and Morale

Government officials say the move is not just about financial assistance but also about boosting morale and productivity among state workers. The increased DA is likely to have a ripple effect on the economy, as higher disposable income among a large group of citizens can stimulate local spending and economic activity.

Moreover, by depositing arrears through PF and NSC instruments, the state governments are promoting long-term savings habits and supporting national saving schemes.

Final Thoughts

As inflation continues to impact household budgets across the country, the increase in Dearness Allowance comes as a welcome relief for millions of government employees and retirees. With states like Assam and Uttar Pradesh leading the way, more states may soon follow suit, ensuring their workforce stays motivated and financially secure.

Whether it’s a “Bihu Gift” in Assam or a budget boost in Uttar Pradesh, this DA hike sends a strong message of support to public servants and pensioners alike.