2% DA hike for Gujarat government employees after Centre’s decision

Following the Centre’s move, the Gujarat government has also announced a 2% increase in Dearness Allowance (DA) for its employees and pensioners.

In the cabinet meeting held on April 18, 2026, the Central government had formally approved a 2% hike in DA. In line with this, the Gujarat Finance Department has now declared a similar increase for state government employees. With this revision, the DA rate has risen from 58% to 60% at both central and state levels.

The revised DA will be effective from January 1, 2026. State government employees will receive the increased amount with their May 2026 salary. Additionally, arrears for the four-month period from January to April will be paid in cash along with the May salary, which is scheduled to be disbursed in June 2026.

The benefit of this decision will extend to all state government employees under the 7th Pay Commission, panchayat staff, teaching and non-teaching staff of grant-in-aid schools, pensioners, and officers of the All India Services (AIS).

Amid rising inflation, this combined decision by the Centre and the state government is expected to provide direct financial relief to lakhs of families by increasing their salaries and pensions.