Gujarat Government Employee Salary Pension: In a major relief for thousands of state employees and pensioners, the Gujarat Government has announced an early disbursement of salary and pension ahead of the Diwali festival. This decision aims to ensure that government staff and retired personnel can celebrate the festival of lights with enthusiasm and financial comfort.
Early Salary and Pension Before Diwali
Usually, the salary of Gujarat Government employees is credited within the first three working days of the following month as per the standard staggering system. However, keeping Diwali celebrations in mind — which falls on October 20, 2025 — the government has decided to credit October salaries, allowances, and pensions earlier than usual.
As per the official circular, payments will be made in three phases — on October 14, 15, and 16, 2025. This move will benefit over 9 lakh government employees and pensioners across the state.
DA Hike Announced as Diwali Gift
Just a few days before, on October 8, 2025, the Gujarat Government had already announced a hike in the Dearness Allowance (DA) for employees covered under both the Sixth and Seventh Pay Commissions.
Under the new order, employees under the Seventh Pay Commission will receive a 3% DA increase, while those under the Sixth Pay Commission will get a 5% rise in their allowance. The revised DA will be effective from July 1, 2025, bringing a much-needed financial boost to thousands of employees and pensioners.
Mini Vacation Declared for Government Offices
To further enhance the festive spirit, the government has also announced an eight-day Diwali vacation for various departments, boards, corporations, and panchayats. The holiday period will start from October 19 to October 26, 2025, which includes two Sundays and one Saturday.
To compensate for these holidays, government offices will remain functional on November 8, 2025, and December 13, 2025. Departments have been instructed to communicate these details to all employees in advance.
Over 9.5 Lakh Employees and Pensioners to Benefit
This DA increase will be applicable retrospectively from July 1, 2025, and the differential amount for three months — July to September — will be paid in one installment. The decision will benefit around 4.69 lakh active employees and 4.82 lakh pensioners of the Gujarat Government, totaling 9.51 lakh beneficiaries.
Huge Financial Outlay for the State
According to official data, the state government will release around ₹483.24 crore as arrears for the increased DA payments. Additionally, it will incur an annual expenditure of approximately ₹1,932.92 crore on the revised salary, allowance, and pension payouts.
The Chief Minister’s Office and the Finance Department have issued directives to implement this employee-friendly decision promptly to ensure smooth processing before the festival.
Who Will Be Eligible for the Revised Benefits?
The benefit of this DA hike and early Gujarat Government Employee Salary Pension payment will be extended to:
- All state government employees with provident fund accounts managed by the government.
- Panchayat employees under the state administrative framework.
- Teaching and non-teaching staff of government-aided secondary and higher secondary schools.
- Employees of approved grant-in-aid institutions that receive salary revisions under the Seventh Pay Commission.
The benefit will also cover primary teachers on deputation, transferred staff, and contract employees who are entitled to salary revisions under the Seventh Pay Commission.
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DA Formula and Calculation Explained
For those wondering how Dearness Allowance (DA) is calculated, it is essentially an inflation-linked benefit given to government and public-sector employees to help them maintain their standard of living despite rising prices.
The DA rate is revised twice a year — usually in January and July — based on the All-India Consumer Price Index (AICPI).
For central government employees, the formula used is:
DA (%) = [(Average AICPI for last 12 months – 115.76) / 115.76] × 100
For public sector undertakings (PSUs), the formula is slightly different:
DA (%) = [(Average CPI for last 3 months (Base year 2001=100) – 126.33)] × 100
This ensures that employees in both urban and rural regions receive a fair adjustment according to living costs.
What is Dearness Allowance (DA)?
Dearness Allowance is a cost-of-living adjustment allowance paid to government employees, public sector workers, and pensioners. It helps them cope with inflation and maintain financial stability. The allowance varies for employees working in urban, semi-urban, and rural areas, as their living expenses differ.
By revising the DA regularly, the government ensures that employees’ purchasing power remains intact even during periods of high inflation.
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A Festive Boost for Government Staff
This twin decision — early Gujarat Government Employee Salary Pension payment and DA hike — comes as a festive bonus for lakhs of families across the state. With increased income and early credit, employees and pensioners can now prepare for Diwali with better financial freedom and peace of mind.
The Gujarat Government’s proactive step not only shows its sensitivity toward its workforce but also strengthens the trust between the administration and its employees. It highlights a people-first approach, ensuring that government personnel who serve the state throughout the year can also celebrate the festival of lights with joy and dignity.