Shimla: In a pre-Diwali announcement on Wednesday, Chief Minister Thakur Sukhvinder Singh Sukhu said state government employees and pensioners will receive a 3 percent Dearness Allowance (DA) increase. The new allowance will be included in October’s salaries and pensions, payable in November.
He added that arrears for the period from April to September 2025 will be deposited into employee bank accounts this month. A separate order will be issued later for the payment of arrears from July 2023 to March 2025.
The Chief Minister made the announcement while speaking at the convention of the Himachal Pradesh Electricity Board Employees Union in Shimla. Addressing the union members, he said the government would consider providing the Old Pension Scheme (OPS) to board employees after discussions.

Sukhu called for reforms within the Electricity Board, highlighting that the support of employees was crucial. He pointed to high production costs at the Uhl project, which he attributed to senior officials rather than the workforce. He also directed the board to create a compensation policy for outsourced employees and to clear all pending promotions immediately.
The Chief Minister noted the state’s economic challenges, accusing the previous BJP government of leaving behind a debt of Rs. 75,000 crore and employee liabilities of Rs. 10,000 crore. He also said the central government has been pressuring the state to withdraw the OPS.
“If employees are not receiving their benefits today, it is not due to the present government,” Sukhu said, adding that his administration inherited a difficult financial situation.
He also highlighted his government’s reforms in education, which he said have improved Himachal’s national ranking for quality from 21st to 5th. He mentioned significant investments in the health sector, including new technology like PET scans and robotic surgery at major hospitals. The event was attended by legislators Sanjay Awasthi and Harish Janartha, HPSEBL Chairman Prabodh Saxena, and union leaders.