
Several states, including Odisha, Tamil Nadu and Bihar, have announced hikes in dearness allowance (DA) for government employees and pensioners, while West Bengal is also expected to take a key decision on DA and pay revision soon. Here's a look at the details:
Odisha Chief Minister Mohan Charan Majhi on May 15 announced a 2 per cent increase in dearness allowance (DA) for state government employees and pensioners.
With the revision, the DA has been raised from 58 per cent to 60 per cent, a statement from the Chief Minister's Office (CMO) said.
The increase will be implemented retrospectively from January 1, 2026, and will be paid along with the May salary, it said.
Alongside this, the temporary increase (TI) for pensioners has also been raised by 2 per cent and will be reflected in the May pension, the statement added.
About 8.5 lakh state government employees and pensioners are expected to benefit from the announcement.
Tamil Nadu government on May 14 announced an increase in Dearness Allowance (DA) for state government employees and teachers, raising it from the current 58 per cent to 60 per cent, effective January 1, 2026.
In a statement on X, the office of the Chief Minister of Tamil Nadu shared, "Hon'ble Chief Minister of Tamil Nadu Thiru. C Joseph Vijay announces that the dearness allowance, currently at 58 per cent for government officials and teachers, will be increased to 60 per cent effective from 01.01.2026."
According to the press release from the Tamil Nadu government, 16 lakh government employees, teachers, pensioners, and family pensioners will benefit from the measure.
The press release stated that the hike in the DA will entail an additional annual expenditure of ₹1,230 crore for the government, and the state government will allocate the necessary additional funds for this purpose.
The Bihar cabinet also approved an increase in Dearness Allowance (DA) for state government employees and pensioners.
Employees and pensioners covered under the 6th Central Pay Commission will receive a 5 percentage points increase in DA and Dearness Relief, from 257 per cent to 262 per cent, with effect from January 1, 2026.
For employees under the 5th Central Pay Commission, DA has been increased by 9 percentage points, from 474 per cent to 483 per cent, while under the 7th Central Pay Commission, it has been raised from 58 per cent to 60 per cent.
Chief Minister Suvendu Adhikari recently informed key decisions on DA, implementation of the Seventh Pay Commission will be discussed in government' second cabinet meeting to be held on May 18.
"Next Monday, I will hold another cabinet meeting to discuss several pressing concerns," he said.
The CM indicated that a decision on granting Dearness Allowance (DA) to state government employees and pensioners at central rates may also be announced at Monday's cabinet meeting.
The government is also likely to consider the formation of the Seventh Pay Commission, a move that could lead to a revision in salaries of state government employees.
Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect. <br> She writes extensively about how money works in everyday life—helping readers navigate personal finance decisions. <br> As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued. She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world. <br> She also focuses on immigration-related issues, simplifying complex topics around visas, passports, overseas financial planning, and the many practical challenges Indians face while moving or living abroad. <br> Alongside personal finance, Sanchari has a strong understanding of international politics, contemporary and historical conflicts, and global state decisions. She closely tracks how geopolitical developments influence economies, markets, and individual financial choices, bringing together finance and global affairs in her reporting. <br> She began her career as a desk editor, which gave her a strong foundation in news writing. Over time, her interest naturally shifted toward personal finance. Before joining Mint in 2020, she worked DNA, The Times of India, Outlook Money, BloombergQuint, and ETMoney. At Mint, she got an opportunity to expand her coverage to include immigration and geopolitical developments while continuing to closely follow personal finance trends and market movements.As a journalist, she is committed to accuracy, intellectual rigour, and fairness. <br> She is an English Major and her work took her across cities including Delhi, Mumbai, and Pune. Living independently from an early age gave her firsthand experience in managing life and money on her own. This practical exposure sparked her strong interest in personal finance. <br> Outside the newsroom, Sanchari is a sports enthusiast who regularly plays lawn tennis and squash. In her younger years, she was also a national-level badminton player.
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