The Assam government has approved a two per cent hike in dearness allowance (DA) for its employees and pensioners. The increase will take effect from January 1, 2025.
The updated DA will be reflected in the salaries disbursed before the Bihu festival. In addition, arrears for January, February, and March will be paid out across the months of April and May.
This move aims to offset the impact of inflation on state government employees. With rising prices increasing the cost of living, the additional DA is expected to bring some relief. The revision ensures that salaries manage to somewhat keep pace with current economic conditions.
A similar decision was announced by the Central government, which recently approved a two per cent DA hike for its employees and pensioners. That revision, effective from 1 April, 2025, is expected to benefit nearly 11.5 million Central government staff and retirees.
For employees, the impact of the DA increase is significant. For instance, someone with a basic pay of Rs 30,000 will now receive Rs 18,200 as DA under the two per cent hike, up from Rs 17,500 at the earlier 50 per cent rate. Higher salary brackets will see proportionally larger increases.
The Central government’s adjustment follows recommendations from the 7th Central Pay Commission and is part of a twice-yearly revision based on the All India Consumer Price Index for Industrial Workers (AICPI-IW). The combined annual financial impact of the DA and Dearness Relief (DR) increases for Central employees is estimated at over Rs 6,600 crore.
