In a move aimed at strengthening financial welfare, the Uttarakhand government has approved a 3 percent increase in Dearness Allowance (DA) and Dearness Relief (DR) for state employees and pensioners. The decision, effective from July 1, 2025 will see the revised rates reflected in the October salary and pensions.
Our correspondent reports that the Cabinet’s notification confirms the hike will benefit more than 2 lakh pensioners as well as government staff working across state departments, local bodies and state-public-sector units. The upward revision is described as a “festival gift” ahead of Diwali and reflects the administration’s intent to protect pensioners and employees from inflationary pressures.
The government statement emphasises that the move strengthens the purchasing power of pensioners and workers while demonstrating the state’s commitment to inclusive welfare. Officials pointed out that the adjustment has been made irrespective of any additional financial burden, underlining the priority placed on social protection.
The revised DA and DR will be credited together with the October pay and pension via treasury and bank channels. Pensioners receiving family pension or relief under state pension rules will also be eligible. Officials said that arrears for the three months from July to September will be cleared in the upcoming salary and pension cycles.
Observers noted that the hike comes at a crucial time when inflation remains elevated and cost of living challenges persist in the hill state. The increase is expected to provide tangible relief to retired employees, many of whom depend on fixed income and face rising household costs.
Senior state officials added that the government is monitoring fiscal metrics and remains financially well-placed to absorb the burden of the revision without compromising ongoing infrastructure or development programmes. The treasury department is coordinating with all district treasuries to ensure seamless implementation.
The welfare move has drawn appreciation from pensioner associations and employee unions in Uttarakhand. Many pensioners said the decision eases their financial burden and helps them plan for festive expenses. Employee representatives said the hike sends a positive signal about the government’s concern for its workforce.
This 3 percent raise aligns with similar moves by other states and the Union government, which recently announced comparable increases for central employees and pensioners. The Uttarakhand initiative thus positions the state among those proactively responding to cost-of-living challenges.
Officials noted that this adjustment is subject to annual review and may be followed by further revisions depending on inflation trends. Meanwhile, district administrations have been instructed to update pension and salary software modules and communicate changes to affected beneficiaries promptly.
The state government reaffirmed its pledge to continue prioritising employee welfare and senior citizen well-being through timely interventions. It said that such measures are integral to its broader development agenda and commitment to social security.

























