The Maharashtra government will pay approximately ₹800 crore in dearness allowance (DA) arrears to state government employees under the fifth, sixth and seventh Central Pay Commissions, according to reports and resolutions issued by the state finance department. The arrears for November and December 2025, along with January 2026, will be paid with salaries for May 2026. This decision affects approximately 5.16 lakh state government employees and 8.72 lakh pensioners, with the amount expected to be credited directly to employees' accounts along with their May salary. This move will benefit millions of employees and impose an additional financial burden of around ₹800 crore on the state government's budget.
The Maharashtra government has announced a 2% increase in Dearness Allowance (DA) for state employees, effective under the 5th, 6th, and 7th Pay Commissions. This adjustment raises the DA from 58% to 60%, benefiting both current employees and pensioners. The recent decision will see the DA for state employees increase from 58% to 60%, with the financial implication estimated at around ₹800 crore. In addition to the DA hike, the government has also cleared pending DA arrears for November and December 2025 and January 2026, with pensioners and family pension beneficiaries receiving revised Dearness Relief at 60% with retrospective effect from January 2026. The revised DA will also apply to pensioners and family pension beneficiaries across the state.
The Maharashtra government has also approved a 2% increase in dearness relief for retired All India Services (IAS) officers. Pensioners and family pensioners will now receive revised dearness relief of 60%, effective January 1, 2026. This development comes after the state government revised pension norms for employees covered under the National Pension System (NPS). The revised Dearness Relief rate will increase the monthly income of senior citizens, with some cases showing DR up to 60 percent applicable. Pensioners will receive increased payments starting from the beginning of the year, along with applicable arrears. The decision has been taken to offset the impact of inflation and rising living expenses on employees and retirees.
This latest DA revision follows an earlier 3% DA hike announced by the Maharashtra government in February, which had raised the allowance to 58% with effect from July 2025. At that time, Minister of State for Finance Ashish Jaiswal had stated that arrears for the period between July and October 2025 would be released in March 2026 during the Gudi Padwa festival. He had also clarified that arrears from November 2025 to January 2026 would be paid separately through another order. The current revision represents a continuation of the state's commitment to providing regular DA adjustments to offset inflationary pressures on government employees and retirees.
