Several states hike dearness allowance for employees and pensioners ahead of Diwali
Following the Union Cabinet's 3 per cent increase, states including Tamil Nadu, Rajasthan, Madhya Pradesh and Chhattisgarh have announced DA hikes.
The Union Cabinet has increased the dearness allowance (DA) by 3 per cent for central government employees and pensioners, raising the component from 60 per cent to 63 per cent of basic pay. According to Mint, this increase is effective from 1 July and follows the 7th Central Pay Commission (CPC) recommendations.
Several state governments have also announced hikes ahead of the Diwali festival. Tamil Nadu and Rajasthan have both approved a 3 per cent increase, raising the rate from 60 per cent to 63 per cent. Himachal Pradesh increased its DA by 5 per cent, from 45 per cent to 50 per cent, while Chhattisgarh, Madhya Pradesh and Kerala announced 2 per cent increases.
In Tamil Nadu, the 3 per cent hike for state employees, teachers and pensioners is effective from 1 July 2026 and will cost the state exchequer ₹1,858 crore annually. Rajasthan's 3 per cent increase, effective from 1 July 2026, will benefit over 7 lakh employees and 5 lakh pensioners, with arrears for July to October deposited in General Provident Fund accounts.
Chhattisgarh Chief Minister Vishnu Deo Sai said the 2 per cent hike, effective from 1 November, would provide financial relief to 3.85 lakh employees and 1.5 lakh pensioners. In Madhya Pradesh, Chief Minister Mohan Yadav announced a 2 per cent hike effective from 1 January, stating that nine months of arrears would be paid in three equal monthly instalments.
Kerala's 2 per cent hike from 35 per cent to 37 per cent will be paid with the October 2026 salary. The state noted the increase aims to provide relief amid rising inflation and turbulent geopolitical times.