Good News! Bhajan Lal Sharma Announces 2% DA Increase for Rajasthan Govt Personnel and Retired Workers

DA Hike: Rajasthan Chief Minister Bhajan Lal Sharma has announced a 2% increase in Dearness Allowance (DA) for state government employees, along with a corresponding hike in Dearness Relief (DR) for pensioners. This move is expected to benefit nearly 12.4 lakh employees and retirees across the state.

DA/DR Hike Approved Under 7th Pay Commission

The Rajasthan government swiftly approved the Finance Department's proposal to increase DA on Tuesday. Under the 7th Pay Commission, state employees and pensioners will now receive 55% DA/DR, up from the previous 53%, effective January 1, 2025.

This decision ensures financial relief for government personnel, including those working under Panchayat Samitis and Zila Parishads. The increased DA will be disbursed in cash from the April 2025 salary, payable in May 2025. Meanwhile, arrears for January to March 2025 will be deposited into employees' General Provident Fund (GPF) accounts.

Financial Impact and Beneficiaries

The move will have a significant financial impact on the state government, with an estimated annual burden of Rs 820 crore. Officials confirmed that approximately 8 lakh government employees and 4.4 lakh pensioners will directly benefit from the increased DA and DR.

Pensioners will receive the revised DR in cash, beginning January 1, 2025. The Rajasthan government has positioned this as an employee-friendly decision aimed at addressing inflation and enhancing financial security for its workforce.

Central Govt Sets Precedent with Similar DA Hike

Just days earlier, on Friday, the Union Cabinet approved a 2% DA hike for Central government employees and pensioners. This decision, impacting over 1.15 crore individuals, raised DA from 53% to 55%, mirroring Rajasthan's move.

Union Minister Ashwini Vaishnaw highlighted that the additional instalment of DA aims to offset rising living costs. The combined fiscal impact on the exchequer due to the hike will be Rs 6,614.04 crore annually.