The state government has announced a significant hike in Dearness Allowance (DA) for its employees and pensioners, effective from January 1, 2026. The decision, which will benefit around 8 lakh individuals, was taken during a cabinet meeting held on Tuesday.
DA Hike Details
The DA has been increased by 4%, raising it from the current 38% to 42% of the basic pay. This increase is in line with the recommendations of the 7th Pay Commission and is aimed at offsetting the impact of inflation on the employees' earnings.
Who Will Benefit?
Approximately 6.5 lakh state government employees and 1.5 lakh pensioners will benefit from this DA hike. The additional financial burden on the state exchequer is estimated to be around Rs 2,500 crore per annum.
Effective Date and Arrears
The increased DA will be applicable from January 1, 2026. Arrears for the months of January to April 2026 will be paid along with the May salary. The government has assured that the payment will be processed without any delay.
Reactions and Impact
Government employee unions have welcomed the decision, stating that it will provide much-needed relief to the workforce. However, some opposition parties have criticized the timing, calling it a pre-election gimmick. The state is scheduled to go to polls later this year.
Chief Minister, in a statement, said that the government is committed to the welfare of its employees and pensioners. He further added that the DA hike is part of a series of measures aimed at improving the standard of living of state employees.
This DA hike is expected to boost consumer spending in the state, as employees will have more disposable income. It may also set a precedent for other states to follow suit.
