
State government employees were receiving Dearness Allowance at the rate of 18 percent, a matter that had triggered widespread dissatisfaction and protests during the previous administration. Addressing the Assembly during his budget speech, the Finance Minister announced that the government would provide an additional 20 percent DA over and above the existing 18 percent. As a result, state government employees will now receive a total of 38 percent DA. The government also confirmed that pensioners will receive the same additional DA benefits, ensuring that retired employees also gain from the landmark decision.
The budget proposal clarified that the enhanced Dearness Allowance will come into full effect from October 1, 2026. This means that during the festive season, state government employees and pensioners will receive a substantial increase in their earnings. Political observers and employee organisations are viewing the decision as a major “festive gift” from the new government.
The DA hike has also significantly reduced the gap between the state and the Central Government’s Dearness Allowance rates. At present, Central Government employees receive DA at the rate of 58 percent. With the latest 20 percent hike, the difference between Central and State DA, which earlier stood at a massive 42 percentage points, has now reduced to 20 percentage points.
Chief Minister Suvendu Adhikari had promised that the gap between the Central and State DA rates would be reduced gradually. The announcement in the 2026 state budget is being seen as the first major step towards fulfilling that commitment. Following the declaration, an atmosphere of celebration spread among various government employees’ organisations within the Assembly premises, as lakhs of employees welcomed the long-awaited financial relief.
