The Arunachal Pradesh government announced a three percentage point increase in dearness allowance (DA) for its employees and pensioners, raising it from 55% to 58%, effective July 1, 2025. This adjustment, aimed at mitigating inflation's impact on living costs in the northeastern state, will benefit over 75,000 regular state government workers, retirees, and All India Services (AIS) officers. Chief Minister Pema Khandu shared the news via a social media post, emphasising the move as a testament to the administration's focus on workforce welfare. Arrears for the July-September period will be disbursed in cash, while the revised DA and dearness relief (DR) will be integrated into October salaries and pensions, providing immediate financial relief amid rising essential prices.
The hike aligns state allowances with those of central government employees, marking the second such adjustment this year after a two-point rise from 53% to 55% in May. This parity is crucial for Arunachal, where state employees often face unique challenges like remote postings and limited urban infrastructure. DA, indexed to the All India Consumer Price Index for Industrial Workers, helps offset cost-of-living surges—India's retail inflation hovered at 5.5% in August 2025, per government data.
Khandu highlighted the decision's broader implications, stating, "This reflects our government's strong commitment to employee welfare and ensuring that every member of our workforce and retired community feels valued." The announcement comes at a time when fiscal prudence is key, with Arunachal's 2025-26 budget allocating Rs. 31,000 crore, including enhanced social sector spending.
The Confederation of Service Associations of Arunachal Pradesh (CoSAAP), a key employee advocacy group, welcomed the enhancement, noting it would foster greater dedication among staff. "The enhancement will benefit more than 75,000 regular state government employees, pensioners, and AIS officers serving in the state," CoSAAP said in a statement, adding that the move would spur sincere efforts toward the state's holistic development. This includes infrastructure projects under the Vibrant Villages Programme and ecotourism initiatives in border districts like Tawang and Anjaw. Employee morale has been a focus for the BJP-led government since 2016, with prior measures like timely salary revisions and pension reforms yielding positive feedback.
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As Arunachal navigates economic recovery post-monsoon disruptions, this DA hike underscores a balanced approach to fiscal policy, blending employee support with developmental goals. With the state aiming for 8% GDP growth in 2025, such incentives could bolster public service efficiency in sectors like education and healthcare, where vacancies persist despite recruitment drives. Khandu’s proactive communication via platforms like X reflects evolving governance in the region, drawing praise from local unions and setting a precedent for neighbouring states.
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