Gujarat and Punjab announce 3 per cent dearness allowance hike
The state government employees and pensioners in both Gujarat and Punjab will receive a 3 per cent increase in dearness allowance.
The state governments of Gujarat and Punjab announced a 3 per cent increase in dearness allowance (DA) for employees and pensioners on 4 November 2026, according to Mint.
Punjab Chief Minister Bhagwant Mann announced on Wednesday that the hike will benefit approximately 8 lakh beneficiaries. The DA rate in Punjab has increased from 50 per cent to 53 per cent, effective from 1 November 2026.
The enhanced amount will be reflected in the December salaries and pensions in Punjab. This follows a previous increase on 23 September, when the Punjab Finance Department raised the DA from 42 per cent to 50 per cent, effective 1 September 2026.
In Gujarat, Chief Minister Bhupendra Patel announced a 3 per cent hike for 4.62 lakh serving employees and 5.07 lakh pensioners. This will raise the DA rate from 60 per cent to 63 per cent, effective from 1 July 2026.
The Gujarat government will pay arrears for four months, from July to October 2026, alongside November salaries and pensions. The government stated that ₹523 crore will be paid towards arrears, with the revision imposing an additional annual financial burden of ₹1,569 crore on the state exchequer.