return to news
  1. Dearness Allowance rate hike: Six states have announced a 3% DA increase so far. Full list

Personal Finance News

Dearness Allowance rate hike: Six states have announced a 3% DA increase so far. Full list

Upstox

2 min read | Updated on October 27, 2025, 10:35 IST

Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

The Union Cabinet approved the 3% DA/DR increase on October 1, 2025, for all Central Government employees and pensioners.

DA hike states

The Union Government revises DA twice every year, in January and July. | Image: Shutterstock

DA rate hike: Several Indian states have recently announced a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) for their employees and pensioners, following the central government’s decision. Haryana is the latest state to implement this increase.

Open FREE Demat Account within minutes!
Join now

On Friday, the Haryana government announced that DA and DR for its employees and pensioners will rise from the current 55% to 58%.

Those drawing their pay and pension or family pension as per the 7th Pay Commission Structure will now receive DA and DR at the rate of 58 per cent, increased from the existing 55 per cent of the basic pay and pension, with effect from July 1, 2025, said an official release.

According to the letter issued by Chief Secretary Anurag Rastogi, the enhanced rate of DA and DR shall be paid with the pay and pension for the month of October, while the arrears for the months of July to September shall be paid in November.

Which states have announced a 3% Dearness Allowance increase so far?

The governments of Bihar, Rajasthan, Assam, Arunachal Pradesh and Uttar Pradesh have approved a 3% increase in Dearness Allowance (DA) for state employees, pensioners, and family pensioners.
The Union Cabinet approved the 3% DA/DR increase on October 1, 2025, for all Central Government employees and pensioners.

DA new rate: The rate increases from 55% to 58%.

Effective date: The hike is effective from July 1, 2025.

Arrears: Employees will receive arrears for the three months of July, August, and September.

The Union Government revises DA twice every year, in January and July.

The last DA/DR hike was announced in March. The Government had then increased the rate of DA/DR by 2% from 53% to 55%.While the revised DA was announced in October, it will apply retrospectively. This means that the difference between the pre-revised and revised DA will be paid as arrears, as the hiked DA will come into effect from July 1.

Notably, dearness allowance varies from employee to employee on the basis of factors like basic pay, employment sector and job location, among other things.

ELSS
Find the best tax-saver funds for 2025.
promotion image

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

Next Story