JUNE 07: In a significant move aimed at providing financial relief amidst rising inflation, the Jammu and Kashmir government has announced a 2% increase in Dearness Allowance (DA) for its employees and pensioners. Effective from January 1, 2025, the DA has been raised from 53% to 55% of the basic pay or pension. This decision is set to benefit approximately 4.5 lakh government employees and 2.38 lakh pensioners and family pensioners across the Union Territory.
According to Government Order No. 156-F of 2025, issued on June 4, 2025, the arrears for the period between January and May 2025 will be disbursed in cash in June. From June onwards, the revised DA will be incorporated into the regular monthly salary and pension disbursements.
Employees and pensioners under the 6th Pay Commission framework will also see a DA increase, with rates rising from 246% to 252% of the basic pay or pension, effective January 1, 2025. The arrears for this category will similarly be paid in June, with the revised DA reflected in subsequent monthly payments.
This DA hike aligns with the recommendations of the 6th and 7th Pay Commissions and mirrors similar revisions implemented at the central government level earlier this year. The increase is a response to the rising cost of living and aims to enhance the purchasing power of government employees and pensioners.
The Finance Department has clarified that all other conditions related to the grant of DA, including rules concerning pensioners who are re-employed or drawing multiple pensions, will remain unchanged as long as they do not conflict with the provisions of the new order.
This decision is expected to inject additional funds into the local economy, as increased salaries and pensions boost consumer spending. It reflects the government’s commitment to supporting its employees and pensioners, ensuring their financial well-being in the face of economic challenges.
The DA hike has been welcomed by employees and pensioners alike, who view it as a timely intervention to mitigate the impact of inflation on their daily lives.