Gandhinagar: The Gujarat Cabinet on Wednesday, November 4, cleared a three per cent increase in dearness allowance (DA) for state government employees and pensioners, the state government announced. The decision was taken at a Cabinet meeting chaired by Chief Minister Bhupendra Patel and will be effective from July 1, 2026, bringing Gujarat's DA rates on par with those of the Central Government.

Source: Nation Press

The revision covers 4.62 lakh serving employees and approximately 5.07 lakh pensioners enrolled under the Sixth and Seventh Pay Commissions — more than 9.69 lakh families in all. The beneficiary pool includes personnel from the state government, panchayat services and affiliated institutions, The Freedom Press also reported.

Source: The Freedom Press

State government spokesperson and Minister Jitu Vaghani made the announcement. Arrears covering the four months from July to October 2026 will be credited to bank accounts in a single instalment alongside November salaries. According to the state government, the arrears payment will cost the exchequer Rs 523 crore, while the ongoing DA revision will add an annual burden of Rs 1,569 crore to state finances.

3%DA increase cleared by the Gujarat Cabinet
9.69 lakhemployees and pensioners who will benefit
Rs 523 crorefour months of arrears to be paid in one instalment
Rs 1,569 croreannual cost of the revision to the state exchequer

Announcing the decision ahead of Diwali, Vaghani said the government had taken the step in the interest of state employees and pensioners, and was committed to the welfare of employees who worked round the clock in delivering good governance and administration in the state, so that they could celebrate the festival with their families.

The announcement, made days before Diwali, aligns Gujarat's DA with the Centre's revised structure for this cycle. Employees and pensioners covered under the Sixth and Seventh Pay Commissions will see the revised allowance reflected from the July 1 effective date, with the accumulated difference for July to October arriving with the November pay-out.