Gujarat and Punjab government announced 3% DA hike. The revised DA rates, implementation dates, and arrears payment schedules differ in both states
Gujarat and Punjab announced 3% DA hike: Ahead of Diwali, the state governments of Punjab and Gujarat have given a festive gift to their employees and pensioners. Both state governments on November 4 announced a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR).
This decision will directly increase the take-home salaries and pensions of millions of working employees and pensioners in both states. However, the revised DA rates, implementation dates, and arrears payment schedules differ in both states.
In Punjab, Chief Minister Bhagwant Mann announced a 3% DA hike for state government employees and pensioners, effective from November 1, 2026. The increased amount will be added to their December 2026 salary and pension. Around 8 lakh employees and pensioners will benefit from this decision.
Earlier, the state government had increased DA by 8% in September, taking it from 42% to 50%. With the latest announcement, DA has increased by a total of 11% within two months.
Meanwhile, Gujarat Chief Minister Bhupendra Patel has also approved a 3% DA hike for employees and pensioners. The revised rate will be effective from July 1, 2026. Employees will receive four months’ arrears, covering July to October, along with their November 2026 salary and pension. The government will spend ₹523 crore on arrears, while the annual financial burden will increase by ₹1,569 crore. More than 9.69 lakh employees and pensioners are expected to benefit.
Gujarat’s decision follows the Central Government’s recent announcement on October 28, 2026, to increase DA and DR for central government employees and pensioners from 60% to 63%, effective from July 1, 2026. The BJP-led Gujarat government will pay arrears for four months, from July to October 2026, along with November salaries and pensions.
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According to the government announcement, ₹523 crore will be paid towards arrears, while the revision will impose an additional annual financial burden of ₹1,569 crore on the state exchequer.
The announcement follows the Union Cabinet’s decision on 28 October 2026 to increase DA and Dearness Relief (DR) by 3 percentage points, from 60% to 63%, for central government employees and pensioners, effective 1 July 2026.
