Following the Centre’s decision, the Gujarat government has announced a 2% hike in Dearness Allowance (DA) for its employees and pensioners.
The Central government had approved the increase during a cabinet meeting on April 18, 2026. In line with this, the Gujarat Finance Department has implemented a similar revision, raising the DA from 58% to 60%.
The revised DA will come into effect from January 1, 2026. State government employees will receive the increased allowance with their May 2026 salary. Arrears for the period from January to April will also be paid in cash along with the May salary, which will be disbursed in June 2026.
The hike will benefit employees under the 7th Pay Commission, including panchayat staff, grant-in-aid school teachers and non-teaching staff, pensioners, and officers of the All India Services (AIS).
Amid rising inflation, the move is expected to provide financial relief to lakhs of families through higher salaries and pensions.