Uttarakhand Chief Minister Pushkar Singh Dhami on Thursday approved a 3 per cent increase in Dearness Allowance (DA) for state government employees, raising it from 60 per cent to 63 per cent with effect from July 1, 2026.
Following suit, the Chief Minister has approved the proposal to grant state employees Dearness Allowance on par with the Central Government. Along with state government employees, this decision will also benefit eligible personnel working in local bodies, aided educational institutions, state universities, technical educational institutions, and those drawing salaries under UGC pay scales. Dearness Allowance is provided to serving government employees to help offset the impact of inflation on their cost of living. Dearness Relief serves a similar purpose for pensioners by helping them manage the effect of rising prices on their pension income.
The Government of India had previously increased the Dearness Allowance rate by 3% to 63%, effective July 1, 2026, for employees drawing salaries under the 7th Central Pay Commission, according to the Chief Minister’s Office. The approval comes after the Central Government announced the 3 per cent increase in DA for its employees, taking the rate from 60 per cent to 63 per cent with effect from July 1, 2026. The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the additional instalment of DA for Central Government employees and Dearness Relief (DR) for pensioners on October 28, providing relief against rising prices. The revision will benefit approximately 48.54 lakh Central Government employees and 68.71 lakh pensioners across the country. The combined annual financial implication of the increase in DA and DR will be Rs 10,016.10 crore, adding to the government’s expenditure, according to the Central Government. With the latest revision, eligible Central Government employees and pensioners will receive an additional three percentage points over the previous rate of 60 per cent of their basic pay or pension, respectively.
