State government employees and retired personnel have received substantial financial relief ahead of Diwali celebrations. The Gujarat administration has officially sanctioned a 3 percent increase in Dearness Allowance (DA) and Dearness Relief (DR). This welfare measure covers all 4.62 lakh active state employees alongside 5.07 lakh pensioners, providing direct economic advantages to more than 9.69 lakh beneficiaries across the state.
Cabinet Decision Approves Implementation from July 1, 2026
The formal resolution was adopted during a state cabinet meeting convened on Wednesday under the chairmanship of Chief Minister Bhupendra Patel. State minister and government spokesperson Jitu Vaghani detailed the outcome of the deliberations, noting that the revision aligns Gujarat with earlier decisions made for central government personnel. The enhanced allowance takes effect retroactively from July 1, 2026, ensuring that eligible employees receive accumulated arrears in their forthcoming disbursement cycle. The central cabinet had previously cleared an identical 3 percent hike for federal staff and retirees a week earlier.
Four Months of Arrears Scheduled with November Salaries
Addressing the press in Gandhinagar, Jitu Vaghani clarified the operational timeline for clearing pending dues. The accumulated backlog covering the four-month window from July through October 2026 will be released as a single lump-sum installment alongside regular November salaries and pensions. The revision extends across multiple administrative levels, covering line departments, panchayat services, and affiliated public organizations. Furthermore, retired personnel drawing benefits under both the Sixth Pay Commission and the Seventh Pay Commission are entitled to the enhanced rate.
State Treasury Faces Annual Commitment of 1569 Crore Rupees
Providing the economic dimensions of the policy, Agriculture Minister Jitu Vaghani stated that clearing the four-month backlog will require an immediate expenditure of 523 crore rupees from the state exchequer. On an ongoing basis, the 3 percent increment will translate into an additional annual fiscal load of approximately 1569 crore rupees for Gujarat. The expenditure is structured to support household budgets and offset living costs during the festive period without interrupting broader developmental commitments.
Punjab Matches the Revision, Lifting Total DA to 53 Percent
The festive relief extended beyond western India as the Punjab government also implemented an identical adjustment for its administrative workforce. Chief Minister Bhagwant Mann announced a 3 percent enhancement in Dearness Allowance and Dearness Relief for the state workforce. With this revision, the aggregate DA figure for Punjab employees climbs from 50 percent to 53 percent. The policy measure in Punjab directly impacts approximately 8 lakh serving personnel and retired beneficiaries, providing added liquidity to households across the region.
