DA Hike 2025: Ahead of Diwali, the central government and several state governments have announced increases in Dearness Allowance (DA) for employees and pensioners.
The central government recently raised DA and Dearness Relief (DR) by 3%, increasing it from 55% to 58%, effective July 1, 2025.
Similarly, Uttar Pradesh, Bihar, Rajasthan, Karnataka, and Arunachal Pradesh have announced hikes for their state employees.
State-wise DA Increases
1. Uttar Pradesh: The state government increased DA by 3%, from 55% to 58%, effective July 1, 2025.
About 2.8 million employees and pensioners will benefit, costing the state approximately ₹1,960 crore. The Chief Minister has directed immediate cash disbursement of the revised allowance.
2. Bihar: The cabinet approved a 3% DA hike on October 3, raising the DA to 58% for all government employees, pensioners, and family pensioners, effective July 1, 2025.
3. Rajasthan: Chief Minister Bhajan Lal Sharma approved a DA increase to 58%, effective from July 1, 2025.
4. Karnataka: Employees and pensioners will now receive DA of 14.25%, up from 12.25%, effective July 1, 2025. This is the second hike this financial year, after an earlier increase in May from 10.75% to 12.25%.
5. Arunachal Pradesh: The government raised DA by 3%, from 55% to 58%, effective July 1, 2025. Chief Minister Pema Khandu said this decision will benefit thousands of employees and retirees.
Central Government DA Increase
The central government raised DA by 3% on October 1, 2025, from 55% to 58%, in a cabinet meeting chaired by PM Narendra Modi.
This benefits 4.9 million central employees and 6.9 million pensioners, with an annual financial impact of about ₹10,084 crore.
What is DA?
Dearness Allowance (DA) is a cost-of-living adjustment provided to employees and pensioners to offset inflation, calculated based on the Consumer Price Index (CPI-IW) released monthly by the Labor Bureau.
Why DA Hike Matters: DA is a major part of salaries for government employees.
It is revised twice a year, in January and July, to keep pace with inflation, ensuring employees’ and pensioners’ purchasing power is protected.
