DA hike news: Karnataka government hikes dearness allowance for state employees to 14.25% ahead of Diwali 2025

DA hike news: The State government of Karnataka on Wednesday, 15 October 2025, increased the dearness allowance (DA) for the state employees to 14.25% ahead of Diwali 2025, reported the news agency PTI.

According to the agency report, the state government increased the dearness allowance for its employees to 14.25%, compared to their earlier 12.25% level of their base salary.

The Karnataka State government also said that the DA hike will also be applicable to pensioners, according to the finance department's announcement cited in the report.

The dearness allowance hike will be effective from 1 July 2026, as per the official order. This move marks the second DA hike in the 2025-26 financial year.

Earlier in May 2025, the Karnataka State government increased the dearness allowance to 12.25% of the basic pay, compared to their earlier level of 10.75%.

The Dearness allowance is a percentage of employees' basic salary designed to help mitigate the effects of inflation on their living expenses.

Cabinet approves DA hike

On 1 October 2025, the Union Cabinet approved a 3% increase in the dearness allowance (DA) for central government employees ahead of the Diwali festivities.

As per Mint's earlier report, the additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners has been increased by 3% over the existing rate of 55% of the basic pay/pension to compensate against the rise in prices.

“The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f 01.07.2025 representing an increase of 3% over the existing rate of 55% of the Basic Pay/Pension, to compensate against price rise,” the Cabinet said.

The DA hike is based on the recommendations of the central government's 7th Central Pay Commission.

According to the news report, the total annual impact of the DA and DR hike will be nearly ₹10,084 crore. The proposed hike is expected to benefit nearly 49.19 lakh central government employees and 68.72 lakh pensioners.

In 2024, the central government approved a 3% increase in DA for central government employees on October 16, 2024, ahead of Diwali last year.