Gujarat Government DA Hike: The Gujarat government has announced a 3 per cent increase in Dearness Allowance (DA) for state government employees and pensioners ahead of Diwali.
The decision will benefit more than 9.69 lakh employees and retired government staff across the state.
The announcement was made on November 4, 2026, following a state Cabinet meeting chaired by Chief Minister Bhupendra Patel.
The revised allowance will increase the DA rate from 60 per cent to 63 per cent of basic pay.
For thousands of government employees and pensioners, the decision brings additional financial support during the festive season.
The government has also confirmed that pending arrears will be paid along with November salaries and pensions.
Gujarat Government DA Hike: Who Will Benefit?
According to the government announcement, approximately 4.62 lakh serving employees and 5.07 lakh pensioners will benefit from the revised allowance. This takes the total number of beneficiaries to more than 9.69 lakh.
The benefit will cover eligible employees working in state government departments, Panchayat services and other organisations covered under the Sixth and Seventh Pay Commissions.
Retired government employees will receive the corresponding benefit through Dearness Relief (DR), which is provided to pensioners.
The increase is intended to provide financial relief to government staff and pensioners as living expenses and prices of essential goods continue to affect household budgets.
 DA Increased from 60% to 63%
With the latest revision, the Dearness Allowance rate has increased by three percentage points, from the existing 60 per cent to 63 per cent of basic salary.
The revised rate will be effective retrospectively from July 1, 2026.
This means eligible employees and pensioners will also receive the difference for the months during which the higher allowance was applicable but had not yet been paid.
For example, an employee drawing a basic salary of Rs 30,000 will receive Rs 18,900 as DA at the revised 63 per cent rate, compared with Rs 18,000 at the earlier 60 per cent rate.
This translates into an additional Rs 900 every month for an employee with a basic salary of Rs 30,000. The actual increase will depend on an individual’s basic salary.
When Will Gujarat Employees Receive DA Arrears?
The Gujarat government has also clarified the payment arrangement for pending DA dues.
Employees and pensioners will receive arrears covering the four-month period from July to October 2026 along with their November 2026 salary or pension.
The government will spend approximately Rs 523 crore to clear these pending payments. This amount will be distributed among eligible employees and pensioners as part of the revised allowance.
Apart from the arrears, the three-percentage-point increase will create an additional annual financial burden of approximately Rs 1,569 crore on the state government.
The payment of arrears along with November salaries and pensions means eligible beneficiaries will receive both their revised monthly allowance and the outstanding amount.
 What Is Dearness Allowance and Why Is It Increased?
Dearness Allowance is an additional component of salary provided to government employees to help them manage the impact of inflation and rising living costs.
It is calculated as a percentage of an employee’s basic salary.
Governments periodically revise the allowance to help protect the purchasing power of employees as prices of essential goods and services change.
Pensioners receive a similar benefit through Dearness Relief. The amount is calculated based on their eligible basic pension.
The latest Gujarat decision follows the Union government’s announcement of a 3 per cent increase in DA and Dearness Relief for central government employees and pensioners, effective from July 1, 2026.
For Gujarat’s eligible employees and pensioners, the latest revision means a higher monthly allowance and four months of pending payments with the November salary and pension.
