Punjab Government Increases Dearness Allowance (DA) by 40% for Employees Ahead of Diwali

Following the central government, the Uttar Pradesh government has provided a significant gift to government employees for the Diwali festival. The inflation allowance was increased for employees and pensioners one day before Diwali.

The Uttar Pradesh government has increased the Dearness Allowance (DA), which will come into effect from July. Under the Seventh Pay Commission, the government raised the inflation allowance for workers from 58% to 63%. Thus, there has been a 5% increase in the inflation allowance, which will take effect from July 2026. UP employees will now receive the inflation allowance at a rate of 63%.

The government stated that the increased inflation allowance will be paid along with the November salary. Additionally, the inflation allowance for the period from July to November will be aggregated and paid simultaneously. This means that the salaries and pensions of employees and pensioners will increase along with the November salary.

The UP government also announced that the arrears for the period from July to October will be credited to the Pension Funds (PF) of the employees. State employees, as well as workers in auxiliary educational and technical institutions, will benefit from this increase. The enhanced inflation allowance will also be available to employees of urban local bodies.

In anticipation of the Diwali festival, the Gujarat state government has provided a significant gift to its employees. A 3% increase in the Dearness Allowance (DA) has been approved for 9.69 lakh employees and pensioners of the state.

This decision comes against the backdrop of a recent announcement by the federal government regarding a 3% increase in the Dearness Allowance for all its employees and pensioners. The DA hike set by the state government will take effect from July 1st. Following this, the DA for Gujarat employees will increase to 63% and will be disbursed with the July salary.

A representative of the state government, Minister Jithubhai Waghaani, announced the decision at the cabinet meeting. He clarified that the decision to increase the DA by 3% in line with the federal government was made for the state's employees. This DA increase will become effective from July 1, 2026.

More than 9.69 lakh families will directly benefit from this decision, including 4.62 lakh employees of government services, municipal services, and other institutions benefiting from the sixth and seventh pay commissions, as well as approximately 5.07 lakh pensioners.

To make the celebration even more joyous, the difference for four months, from July 2026 to October 2026, will be paid out in a lump sum. This amount for the past periods will be credited to the accounts of employees and pensioners along with the November 2026 salary. The state government will pay employees 523 crore rupees as compensation for the four months.

Furthermore, the DA increase will result in an additional annual financial burden on the state government amounting to 1569 crore rupees. The government, led by Chief Minister Bhupendra Patel, affirms its commitment to the happiness of workers who daily serve the cause of good governance and to increasing joy during their festivals.

The state government has made an important decision by announcing an increase in the inflation allowance for central employees. For a long time, central workers have been expecting the government to grant them a salary indexation increase for the Diwali holiday.

Just before Diwali, the Cabinet approved an increase in the inflation allowance, providing a significant gift to civil servants. An increase of 3 percent in the inflation allowance was approved for employees of the central government. Consequently, the inflation allowance for these workers increased by 3 percent, reaching 63 percent.

This increase in the inflation allowance applies to July. As a result of this increase, the salaries of central employees will increase in October. The total government expenditure related to this will amount to 10,016 crore rupees.