DA Hike: Big Gift for Employees as DA Rises to 55%, Effective from January

DA Hike Update:
The Rajasthan government has delivered good news to 1.25 million employees and pensioners. Chief Minister Bhajanlal Sharma announced a 2% hike in Dearness Allowance (DA) and Dearness Relief (DR) to mark the beginning of the New Year and the financial year. As a result, DA will increase from 53% to 55%, effective from January 1, 2025.

How Much is the DA Hike?

Under the 7th Pay Commission framework, the state government has increased DA and DR by 2%. This will benefit around 800,000 government employees and 440,000 pensioners. Sharing the news on social media platform X, CM Bhajanlal Sharma wrote:
"On the occasion of Vikram Samvat 2082 and the start of Financial Year 2025-26, a 2% increase in DA for state employees and pensioners has been approved. The hike will be effective from January 1, 2025."

When and How Will the Money Be Paid?

• New Rates Effective: From January 1, 2025

• Arrears for January to March: To be credited to employees' General Provident Fund (GPF) accounts

• Cash Payment: Starting from April 2025, the increased DA will be directly added to the monthly salary

State and Centre DA Rates Now Aligned

In March 2025, the central government raised the DA for its employees to 55%. Following this move, Rajasthan has matched the central rates, ensuring both state and central employees now receive the same DA percentage.

Why is the DA Hike Important?

Dearness Allowance is a crucial part of employees’ salaries, meant to cushion the impact of inflation. When inflation rises, governments increase DA to help employees maintain their purchasing power. Apart from boosting monthly income, a higher DA also leads to enhanced retirement benefits.

This move brings timely financial relief to lakhs of families facing rising living costs.