Surat Municipal Employees Get 10% DA Hike, Pension Benefits Expanded

SURAT: Thousands of employees of the Surat Municipal Corporation (SMC) and the Municipal Primary Education Committee are set to receive a major financial boost. The civic body has approved a 10% increase in Dearness Allowance (DA), raising it from 50% to 60% with effect from January 1, 2026, in line with the Gujarat government’s revised policy.

The proposal will be placed before the SMC Standing Committee for formal approval on Saturday. Once cleared, the revised DA will benefit officers, employees and non-teaching staff across the civic administration.

“The revised Dearness Allowance has been approved in accordance with the Gujarat government’s policy and will be implemented from January 1, 2026,” SMC officials said.

The increase will have a significant financial impact on the civic body’s finances. According to SMC estimates, the revised DA will add nearly ₹1.16 crore to the monthly salary bill, resulting in an annual financial burden of about ₹13.98 crore.

Employees and pensioners covered under the Sixth Pay Commission will also benefit. Their Dearness Allowance has been revised to 262%, effective from the same date. This revision will increase monthly expenditure by ₹42,669, with an additional annual burden of around ₹5.12 lakh.

“The financial implications have been calculated and placed before the Standing Committee along with the proposal for administrative approval,” officials added.

The civic body has also decided to implement the Gujarat government’s enhanced pension scheme for municipal employees. Under the revised policy, employees who suffer disability while on duty or families of employees who die during service will receive enhanced disability and family pension benefits.

The administrative wing has already approved the proposals. The Standing Committee is expected to take the final decision on the DA revision, Sixth Pay Commission rates and enhanced pension benefits at its meeting on Saturday, bringing significant relief to thousands of municipal employees and their families.