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New Delhi: The Modi government had recently increased the dearness allowance (DA) for central employees. Now according to the reports several states—both large and small—have started making decisions regarding the allowance. In this sequence the Pema Khandu-led Arunachal Pradesh government has announced a 3 percent hike in the dearness allowance (DA) and dearness relief (DR) for state government employees and pensioners. With this increase the rate has gone up from 55% to 58% effective from July 1 2025. Chief Minister Pema Khandu while announcing the hike stated that arrears for the period from July to September 2025 will also be released and the revised DA and DR will be included in the salary and pension for October. Sharing the update on social media CM Khandu wrote This decision reflects our government’s strong commitment to employee welfare. We want to ensure that every member of our workforce and retired community feels valued and supported. Here are some of the key details: Earlier in May 2025 the state government had increased the DA and DR from 53 percent to 55 percent. With this new hike the allowances of Arunachal Pradesh employees are now at the same level as those of central government employees. It is worth noting that over 75000 regular state government employees pensioners and AIS officers will benefit from this decision. Central employees are awaiting the formation of the Eighth Pay Commission. In January the government had announced the formation of the Eighth Pay Commission. It is important to note that neither has the committee of the pay commission been formed nor has it been determined when its recommendations will be implemented. It is important to note that the recommendations of the current Seventh Pay Commission will expire on December 31 2025.