In a move aimed at easing the impact of rising prices, the Government of Rajasthan has approved a 2 per cent increase in dearness allowance (DA) and dearness relief (DR). The decision, effective from 1 January, 2026, will benefit more than 12 lakh employees and pensioners across the state.
With this revision under the Seventh Pay Commission framework, DA and DR rise from 58 to 60 per cent. The hike applies to over 7 lakh state government employees and around 5.4 lakh pensioners, including staff working in local bodies such as panchayat samitis and zila parishads.
The revised allowance will start reflecting in salaries for May 2026, which are typically disbursed in June. Arrears for the period between January and April will be handled differently. For employees, the pending amount will be credited to their General Provident Fund accounts, strengthening long-term savings. Pensioners, on the other hand, will receive the revised amount in cash, improving immediate liquidity.
The financial implication of the move is significant. The state exchequer is expected to bear an additional annual burden of over Rs 1,100 crore due to the increase.
The decision follows a similar step by the Government of India, which recently raised DA by 2 per cent for Central government employees and pensioners. That revision also brought DA levels to 60 per cent, benefiting over one crore individuals nationwide.
Dearness allowance continues to be a key component of public-sector compensation. It is designed to offset inflation and protect purchasing power. While the increase may appear modest, it offers a steady rise in monthly income for employees and improved financial stability for pensioners.
