Ahead of Diwali, Gujarat govt hikes DA by 3% for employees, pensioners

Ahmedabad: The Gujarat government on Wednesday announced a 3 per cent hike in Dearness Allowance (DA) for its 4.62 lakh serving employees and 5.07 lakh pensioners, providing relief to over 9.69 lakh beneficiaries ahead of Diwali.

The decision, taken at a state cabinet meeting chaired by Chief Minister Bhupendra Patel, will be effective from July 1, 2026, and is in line with the Centre's decision, senior cabinet member and government spokesperson Jitu Vaghani said.

A week ago, the Union Cabinet approved a 3 per cent hike in the DA for central government employees and pensioners.


Vaghani told reporters in Gandhinagar that the arrears for the four-month period, from July to October 2026, would be paid in a single instalment along with the November salary and pension.

The beneficiaries of the DA hike include employees of state government departments, panchayat services and other organisations, as well as retired employees covered under the Sixth and Seventh Pay Commissions.

The state government will incur an expenditure of Rs 523 crore towards payment of arrears, while the DA hike will result in an additional annual financial burden of Rs 1,569 crore, the minister said.

Vaghani said the decision was aimed at recognising the contribution of government employees who work towards ensuring good governance and providing them financial relief during the festive season.