Ahead of Diwali, the Gujarat government has announced a 3% increase in dearness allowance (DA) for state government employees and pensioners. The decision comes following demands raised by various government employee organisations.
The proposed hike will benefit regular state government employees, Panchayat Seva employees and pensioners. According to the information provided, around 4 lakh serving employees and 4.82 lakh pensioners are expected to benefit, taking the total number of beneficiaries to approximately 8.82 lakh.
DA to increase from 60% to 63%
With the latest revision, the DA rate will rise from 60% to 63% under the 7th Pay Commission. Earlier, in May 2026, the state government had increased the allowance by 2 percentage points, taking it from 58% to 60%.
For an employee drawing a basic salary of ₹30,000, the monthly DA will increase from ₹18,000 to ₹18,900. This translates into an additional benefit of ₹900 per month.
The government is expected to issue an official circular detailing the implementation date and other provisions.
Change in holiday schedule
The state government has also announced a change in the holiday schedule. Government offices will remain closed on November 9, while Saturday, December 12, will be observed as a working day to compensate for the holiday.

