The Tripura Government has announced a 3% Dearness Allowance (DA) and Dearness Relief (DR) for state government employees and pensioners, effective from October 1, 2025. Chief Minister Dr. Manik Saha made the declaration during the recent Assembly Session. With this announcement, the total DA and DR for state employees and pensioners will rise to 36% from October 2025.
In comparison, Central Government employees and pensioners are already receiving 55% DA and DR from January 2025. Initially, expectations were higher, with many anticipating an increase beyond 3%. However, Dr. Saha clarified that the decision was taken despite financial challenges, highlighting the government’s commitment to employee welfare. The move will involve an additional expenditure of Rs. 125 crore from the state exchequer.
Earlier this year, Agartala was upgraded to a ‘Y’ category city. Following the reclassification, officers of the All India Services posted in Tripura and members of the Tripura Judicial Service have been receiving House Rent Allowance (HRA) at the rates applicable to ‘Y’ category cities. The Finance Department formalized this benefit through a memorandum issued on April 24, 2025.
As per the 7th Pay Commission recommendations, employees in ‘Y’ category cities are entitled to 16% HRA on their basic pay. The rate is designed to increase to 18% when DA crosses 25% and further to 20% once DA crosses 50%. Presently, however, state government employees in Tripura are receiving only 8% HRA. This disparity has led to growing demands for a revision in allowances. Several employee organizations have submitted formal representations urging the state government to align their HRA benefits with national standards.
According to reliable sources in the concerned ministry, the Tripura Government is preparing to announce an additional allowance hike of at least 15% for employees and pensioners within October 2025. While the exact nature of this revision is yet to be confirmed, it may involve either a further increase in DA and DR or an enhancement in HRA.
The development has sparked anticipation among employees and pensioners across the state. Many see it as a potential step towards bridging the gap between the state and central government pay structures. The upcoming announcement is expected to provide clarity and much-needed financial relief to thousands of beneficiaries in Tripura.