The Gujarat government has announced a 3-percentage-point hike in Dearness Allowance (DA) for state government employees and pensioners ahead of Diwali, benefiting nearly 9.69 lakh people.

The decision, taken at a state Cabinet meeting chaired by Chief Minister Bhupendra Patel will raise the DA rate from 60% to 63% for employees covered under the 6th and 7th Pay Commissions.

The revised allowance will be effective from July 1, 2026. Employees and pensioners will receive four months of arrears, covering July to October, along with their November salary and pension.

Over 9.69 lakh beneficiaries

The increase will benefit approximately 4.62 lakh serving employees, including those in state and panchayat services, and around 5.07 lakh pensioners.

The government will disburse ₹523 crore towards the pending arrears. The revised DA is also expected to impose an additional annual financial burden of ₹1,569 crore on the state exchequer.

How much more will employees receive?

For an employee drawing a basic salary of ₹30,000, the DA will increase from ₹18,000 at the existing rate of 60% to ₹18,900 at 63%.

This means an additional ₹900 per month, apart from the arrears payable for the previous four months.

The benefit will also extend to eligible pensioners through Dearness Relief.

Gujarat follows Centre’s DA revision

The Gujarat government’s announcement follows the Union Cabinet’s October 28 decision to raise DA and Dearness Relief for central government employees and pensioners by three percentage points, from 60% to 63%, with effect from July 1, 2026.

The state government’s decision brings relief to thousands of families across Gujarat ahead of the festive season.

For nearly 9.69 lakh employees and pensioners, the November salary and pension will therefore carry the additional benefit, along with the four months of pending arrears.