The Assam Cabinet on Friday approved a two-percentage-point increase in Dearness Allowance (DA) for state government employees and Dearness Relief (DR) for pensioners, raising it from 58 per cent to 60 per cent of basic pay. The hike will be effective with the salary and pension for June 2026, payable in July.
The decision, taken at a cabinet meeting chaired by Chief Minister Himanta Biswa Sarma, is set to benefit more than eight lakh state government employees and pensioners across Assam. This adjustment aims to provide financial relief amidst prevailing economic conditions and rising costs of living.
What was announced
Chief Minister Himanta Biswa Sarma announced the Dearness Allowance and Dearness Relief hike following a cabinet meeting held on Friday, June 5, 2026. The increase raises the DA and DR from the existing rate of 58 per cent to 60 per cent. The Chief Minister stated that the enhanced rates would benefit serving state government employees, state government pensioners, family pensioners, extraordinary pensioners, and compassionate family pensioners.
The decision was made during the first cabinet meeting after its recent expansion, which included twelve new ministers. “Today we decided to increase the DA of government employees by two-percentage-point. Till now, they were getting 58 per cent DA; after the hike, it will reach 60 per cent,” Sarma said after the meeting.
Why it matters
This two-percentage-point increase in DA and DR holds significant importance for a large segment of Assam’s population. More than eight lakh state government employees and pensioners will directly benefit from the enhanced rates, according to official statements. The hike is intended to partially offset the impact of inflation and the rising cost of living, thereby improving the purchasing power of government employees and retirees.
The adjustment reflects the state government’s commitment to the welfare of its workforce and pensioners, ensuring their compensation keeps pace with economic realities. Such revisions are crucial for maintaining the financial stability of households dependent on government salaries and pensions.
Background
The Assam government has periodically revised Dearness Allowance and Dearness Relief to compensate its employees and pensioners for inflation. Prior to this announcement, the state cabinet had approved a three per cent increase in DA and DR in October 2025, raising the rate from 55 per cent to 58 per cent. This previous hike was implemented with retrospective effect from July 1, 2025.
Earlier, in March 2024, Chief Minister Sarma had announced a four per cent hike in DA for state government employees, effective from January 1, 2024. This brought the DA to 50 per cent of the basic salary at that time. These adjustments often align with similar decisions made by the Central government for its employees and pensioners, which typically occur twice a year based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
During the same cabinet meeting on June 5, 2026, other significant decisions were also approved. The cabinet declared Dibrugarh as the Second State Capital Region and approved the constitution of the Second State Capital Region Development Authority, Dibrugarh (SCRDA-D). A fund of ₹500 crore will be provided over five years for infrastructure development in this new region. Additionally, the MLA Local Area Development (MLALAD) fund allocation was increased from ₹1 crore to ₹1.5 crore per year for the current financial year, and to ₹2 crore from the next financial year. Amendments were also made to the Assam Secondary Education (Provincialised Schools) Service (Amendment) Rules, 2026, to regulate the promotion procedure for Grade IV employees to Grade III positions.
Key details
The Assam Cabinet’s decision on June 5, 2026, means that the Dearness Allowance and Dearness Relief rates will now stand at 60 per cent of the basic pay or pension. This represents a two-percentage-point increase from the previous rate of 58 per cent.
The enhanced rates will be disbursed with the salary and pension for the month of June 2026, which will be payable in July 2026. This immediate effect ensures that beneficiaries receive the increased allowance without delay. The hike applies to all categories of state government employees and pensioners, including family pensioners, extraordinary pensioners, and compassionate family pensioners.
What’s next
The increased Dearness Allowance and Dearness Relief will be reflected in the salaries and pensions disbursed starting July 2026, covering the payment for June 2026. Government departments are expected to implement the revised rates in their payroll processing for the upcoming month. The Finance Department of the Government of Assam will likely issue a formal executive order to facilitate the implementation of this cabinet decision.