DA Hike: Big news is here. The Karnataka government has declared a 2.25 percent rise in the dearness allowance (DA) for state government employees and pensioners ahead of Diwali. This will raise the employees’ DA from 15.75% to 18%. The announcement was made via a notification issued on 5 November 2026.

The increase will take effect from 1 July

The enhanced dearness allowance will be effective from 1 July 2026. Consequently, employees will start receiving the increased DA benefits from July onwards. This move is set to provide relief to millions of state government employees. This decision by the Karnataka government will not only aid current employees but also retired employees and family pensioners. The DA on their pensions has been raised from 15.75% to 18%. The revised DA will be effective from 1 July 2026. Since implementation begins in July, employees will also be entitled to arrears, although the timing of payment will follow the regulations specified in the government order.

Pre-Diwali DA hikes in several states

It is worth noting that prior to Diwali, multiple state governments have granted their employees and pensioners an increase in dearness allowance. States such as Tamil Nadu, Madhya Pradesh, Himachal Pradesh, Rajasthan, Kerala, Chhattisgarh, and Uttarakhand have all raised their DA rates. Additionally, the central government has increased the DA for central government employees and pensioners by 3%, bringing it to 63%. These measures will offer relief to millions of government employees and pensioners.

Relief extended to central employees as well

The Central Government Cabinet recently approved a 3% hike in the dearness allowance for central government employees and pensioners, raising it from 60% to 63% of the basic salary. This increase will be effective from 1 July and is based on recommendations from the 7th Pay Commission (7th CPC). According to the 7th Pay Commission’s guidelines, the central government revises the DA twice yearly, using data from the All India Consumer Price Index (AICPI). This Diwali announcement marks the second DA increase this year; previously, in April, the government had raised the DA by 2%, from 58% to 60%, effective from 1 January.

In essence, the dearness allowance forms part of an employee’s basic salary and is intended to shield employees from inflation and rising costs of daily essentials. Typically, the central government announces DA revisions around March and October, with the benefits commencing in January and July respectively.