The state government of Jharkhand has declared an increase of three per cent on Dearness Allowance (DA) and Dearness Relief (DR) of its state government workers and pensions, increasing the rate from 55 per cent to 58 per cent. This move, which was passed by the cabinet of Chief Minister Hemant Soren, is a holiday offering before Diwali 2025 and is being received as a relief to thousands of government employees grappling with increasing inflation and family costs.
The changed rates of the DA and DR will be effective retroactively starting July 1, 2025. This implies that the employees as well as pensioners will get arrears of the months of July, August, September and October. The relocation will favour three lakh government workers and pensioners throughout the state. With the allowance raise, the state is trying to soften the effect of inflation and make sure that the ability of its employees to buy remains constant, considering the cost of living is going up.
Dearness Allowance is a cost-of-living adjustment that is given to government employees and pensioners to compensate for the impact of inflation. It is updated on a periodic basis depending on the shifts in the Consumer Price Index (CPI). The increase in Jharkhand is in synchronization with the recent move by the central government to increase the DA and DR by 3 per cent, and has made the total 58 per cent in both central workers and the pensioners. The Jharkhand government has taken the same route and is now operating on equal footing with the rest of the country, and the morale of its employees has been boosted.
This increment will be a welcome Diwali present to several employees, particularly since costs are likely to go high during the season. This increase will likely provide a new stimulus to the economy of the state because employees will spend more money on consumption, services, and celebrations. Nonetheless, it will also increase financial burden on the state exchequer, which will be required to take care of the cost of the added allowances and arrears. The financial implications, which are not clearly stated by the government, are not known, but the action reiterates the importance of the government in taking care of its employees, despite the financial constraints.
The government of Jharkhand has had an active Chief Minister, Hemant Soren, who has been keen on attending to the needs of the government workers, and this latest move is an indication of the government trying to keep in good terms and balance with the government employees in the workforce. As inflation does not seem to slow down, the DA increase will ensure that thousands of families can afford to spend more comfortably. It has been a true Diwali present to the state employees and pensioners whose livelihoods depend on the state government of Jharkhand.
