The Assam Cabinet has approved a two percent increase in Dearness Allowance (DA) and Dearness Relief (DR) for over eight lakh state government employees and pensioners, effective from July 2026. This decision raises the DA and DR rates from 58 percent to 60 percent of the basic pay or pension.

The hike aims to provide financial relief to a significant portion of the state’s workforce and retired personnel amidst rising living costs. Chief Minister Himanta Biswa Sarma announced the decision, emphasizing the government’s commitment to the welfare of its employees and pensioners, whom he described as valued partners in Assam’s development journey.

What was announced

The Assam Cabinet, in a meeting held on June 9, 2026, approved the two percent increment in Dearness Allowance and Dearness Relief. Chief Minister Himanta Biswa Sarma formally announced the decision on the same day, sharing the update through a post on social media platform X. The Finance Department subsequently issued an Executive Order on June 16, 2026, officially notifying the increase under the Assam Services (Revision of Pay) Rules, 2017.

The revised rates will be implemented from July 2026, with the enhanced amount to be credited along with the June 2026 salary and pension, disbursed in July 2026. This adjustment brings the total DA and DR to 60 percent of the basic pay or basic pension.

Why it matters

This increase in DA and DR is expected to directly benefit more than eight lakh state government employees and pensioners, providing them with additional financial support to counter inflationary pressures. Dearness Allowance is a crucial component of salary and pension, designed to help employees and pensioners maintain their purchasing power against the impact of rising prices.

According to Finance Minister Jayanta Mallabaruah, the enhancement will incur an additional monthly expenditure of ₹49.82 crore for the Assam government under the salary and pension heads. This translates to an annual financial burden of approximately ₹597.84 crore. Assam is currently among only six states in India to have raised its DA to 60 percent.

Background

The revision of Dearness Allowance and Dearness Relief is a periodic exercise undertaken by governments to adjust for inflation. The Assam government generally aligns its DA rates with the Central Government’s updates, although there can be implementation delays. Prior to this hike, the DA and DR rates stood at 58 percent.

In recent years, the Assam government has implemented several DA hikes. In March 2024, Chief Minister Sarma announced a four percent hike, raising the DA to 50 percent, effective from January 1, 2024. This was followed by another two percent increase in April 2025, bringing the rate to 55 percent, effective from January 1, 2025. Another three percent hike in November 2025 brought the rate to 58 percent, effective from July 1, 2025. The latest two percent increase to 60 percent was approved on June 5, 2026, and made effective from January 1, 2026, with arrears for January to May 2026 to be paid. However, the revised DA and DR rates were paid along with June 2026 salaries and pensions disbursed in July 2026.

The state’s financial position has been a subject of discussion, with its outstanding debt increasing from ₹35,690 crore on March 31, 2016, to ₹1,61,761 crore on March 31, 2025. Despite this, the government has reiterated its commitment to employee welfare.

Key details

The key details of the Dearness Allowance and Dearness Relief hike are as follows:

  • Increase Percentage: Two percent
  • Revised Rate: From 58 percent to 60 percent of Basic Pay/Basic Pension
  • Effective Date: July 2026
  • Beneficiaries: Over eight lakh state government employees and pensioners
  • Additional Monthly Expenditure: ₹49.82 crore

Reactions

Chief Minister Himanta Biswa Sarma highlighted the government’s stance on employee welfare. “Our employees and pensioners are valued partners in Assam’s growth story. To further support them, the Assam Cabinet has approved a 2% increase in DA and DR, taking it from 58% to 60% from this July. We remain committed to their welfare and wellbeing,” Sarma said.

Finance Minister Jayanta Mallabaruah, while informing the Assam Legislative Assembly about the financial implications, clarified that the state government determines salary revisions and service benefits based on the recommendations of the State Pay Commission and Assam’s financial position. He also noted that Assam is among a select few states to have implemented such a significant DA hike.

What’s next

The enhanced DA and DR rates will be reflected in the salaries and pensions disbursed in July 2026. The Finance Department has already issued the necessary notification for the implementation. Employees and pensioners are expected to receive the increased benefits without further delay. The state government continues to monitor economic conditions and may consider future revisions in line with national trends and the recommendations of the State Pay Commission.

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