The Maharashtra government has approved a three per cent increase in dearness allowance (DA) for its employees and eligible staff, taking the revised DA rate to 58 per cent. The hike will be effective from July 2025, Minister of State for Finance Ashish Jaiswal informed the state assembly on Wednesday.

According to the announcement, the enhanced DA will be paid in cash starting this month. The government has also outlined the schedule for disbursing pending arrears.

Arrears for the period between July 2025 and October 2025 will be released in March 2026, coinciding with the festival of Gudi Padwa. Orders for arrears covering November 2025 to January 2026 will be issued separately, the minister said.

The decision is expected to benefit approximately 5.16 lakh state government employees and around 8.72 lakh pensioners across Maharashtra.

The minister stated that the DA revision follows the Centre’s established formula linked to the Consumer Price Index, which guides periodic adjustments to cushion employees against rising living costs. Such revisions are typically implemented in phases, depending on inflation trends and fiscal considerations.

Employee unions welcomed the move, calling it a timely relief measure amid persistent price pressures. Representatives said the cash payout of revised DA and arrears would help households manage expenses and improve consumption in the run-up to the festive season.

Finance department officials indicated that the additional outgo on account of the DA hike has been factored into the state’s budgetary projections. They added that the government remains committed to balancing employee welfare with fiscal discipline while meeting development expenditure targets.