DA Arrears Hike update 2025: 3% Increase, Cash Arrears for Employees

If you’re a government employee or pensioner in Arunachal Pradesh, here’s some good news — your salary is about to rise! The state government has officially approved a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR), bringing a wave of relief just before the festive season.

Now, here’s the interesting part — the arrears from July to September 2025 will be paid in cash. Yes, not adjusted later, but actually credited to your account as a one-time payment. Let’s break down what this means for you.

What’s the Latest Update?

After the central government announced a 3% DA hike for its employees, several states have started following suit. Joining them, the Arunachal Pradesh government has also raised the DA/DR from 55% to 58%, effective July 1, 2025.

Chief Minister Pema Khandu shared the news on social media, saying this move would benefit thousands of state government employees, pensioners, and All India Services (AIS) officers working in Arunachal Pradesh.

With inflation rising, this step couldn’t have come at a better time. For many employees, even a small increase in salary makes a huge difference in daily life — from paying bills to managing family expenses.

Arrears to Be Paid in Cash

Here’s the part everyone’s excited about — the government will pay three months of DA arrears (July–September 2025) in cash.

That means employees won’t have to wait for months or deal with adjustments in future pay slips. The October 2025 salary will reflect the new 58% DA rate, bringing an instant boost to income.

Think of it as a mini-festival bonus — directly credited to your bank account!

How Much Extra Will You Receive?

To understand the impact, let’s look at some simple examples:

  • For a basic salary of ₹20,000:
    A 3% DA increase equals ₹600 per month.
    For three months of arrears, you’ll receive ₹1,800 in cash.
  • For a basic salary of ₹40,000:
    The increase is ₹1,200 per month.
    You’ll get ₹3,600 as arrears.
  • For a basic salary of ₹60,000:
    The increase comes to ₹1,800 per month.
    Your total arrears will be ₹5,400 in cash.

This cash payment will directly go to the employees’ and pensioners’ accounts, giving them immediate financial relief.

Why This DA Hike Matters

Dearness Allowance (DA) is not just a routine increment — it’s a vital cost-of-living adjustment that protects government employees from the effects of inflation. Prices of essential items like food, fuel, and transportation have been rising steadily.

So, when the government increases DA, it’s basically saying: “We understand your struggles, and we’re trying to help you keep up with inflation.”

For many families, especially those living on fixed pensions, these hikes play a big role in maintaining financial stability.

What About Central Government Employees?

The Union Cabinet, chaired by Prime Minister Narendra Modi, recently approved a 3% hike in DA/DR for central government employees and pensioners as well. This move increased their DA from 55% to 58% of basic pay, just like Arunachal Pradesh’s new rate.

The central government usually revises DA twice a year — once in January and again in July. This time, employees will receive arrears for July, August, September, and October 2025.

Earlier this year, in March, DA was raised from 53% to 55%. However, it’s worth noting that no DA increase will be announced under the Seventh Pay Commission after December 31, 2025, since its term ends then.


The Bigger Picture

This announcement is part of a broader trend — both central and state governments are taking steps to ease the financial pressure on employees and retirees amid rising inflation.

For Arunachal Pradesh, this decision also signals strong fiscal management and a people-first approach. By releasing arrears in cash, the government ensures that employees can immediately use the funds for important needs — whether it’s education fees, household expenses, or festive shopping.

In short, it’s a small but meaningful boost that reminds people their work is valued and recognized.


Frequently Asked Questions

1. When will the new DA rate come into effect in Arunachal Pradesh?
The new DA and DR rate of 58% will be effective from July 1, 2025, and employees will receive arrears for July to September 2025 in cash.

2. Who will benefit from this DA hike?
All Arunachal Pradesh government employeespensioners, and All India Services (AIS) officers serving in the state will benefit from the hike.

3. How will employees receive the DA arrears?
The arrears for three months will be paid in cash, directly credited to the employees’ and pensioners’ bank accounts.

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