Rajasthan government approves 3% hike in Dearness Allowance (DA) for state employees and pensioners ahead of Diwali, benefiting 12.4 lakh people with increased financial relief from July 2025.
In a much-awaited decision, the Rajasthan government has approved a 3% increase in the Dearness Allowance (DA) for state employees and pensioners just before the festive season of Diwali. Chief Minister Bhajanlal Sharma sanctioned this hike, raising the DA from 55% to 58%, benefiting approximately 12.40 lakh beneficiaries across the state.
The announcement was made on Friday after the Finance Department’s proposal received approval. This increase will be effective from July 1, 2025, and will impact over 8 lakh state employees along with around 4.40 lakh pensioners, including staff from Panchayat Samiti and District Councils.
Financial Impact and Implementation
The decision to enhance the DA is estimated to impose an annual financial burden of around ₹1230 crore on the state exchequer. Employees will receive the increased allowance amount in cash with their October salary, which will be paid in November. Additionally, the increased DA for the period from July 1 to September 30, 2025, will be credited to employees’ General Provident Fund (GPF) accounts.
Pensioners, on the other hand, will receive the revised DA amount as a direct cash payment effective from July 1, 2025.
Synchronizing with Rajasthan Government Move
The Rajasthan government’s decision follows the central government’s approval of a similar 3% increase in DA for its employees and pensioners earlier in the week. Chief Minister Bhajanlal Sharma emphasized that the state is committed to providing timely and equitable benefits to its workforce and pensioners, aligning with the central government’s initiative without delay.
Boost to Festive Spirit and Economy
The Chief Minister expressed that the government is sensitive to the welfare of its employees and pensioners, aiming to provide financial relief through timely salary and pension increments. Announcing the raise just before Diwali, he noted, “This decision will surely bring joy to the employees and pensioners during the festival.”
This DA increase is expected not only to enhance the purchasing power of beneficiaries but also to stimulate market demand during the festive season, which could positively impact overall economic activity within the state.
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