DA Hike: In line with the central government’s actions, several states have started to raise their dearness allowance (DA). On Saturday, October 31, 2026, Tamil Nadu Chief Minister C. Joseph Vijay announced an increase in the dearness allowance (DA) for government employees and teachers. According to a press release from the state government, the DA for central government employees was raised from 60% to 63%, effective July 2026.
Tamil Nadu Government Increases DA
This rise in dearness allowance will also be applicable to Tamil Nadu’s government employees and teachers from the same date. This adjustment will benefit around 1.6 million government employees, teachers, pensioners, and family pensioners. Concurrently, the government will face an annual expense of Rs 1,858 crore.
Rajasthan
It’s worth mentioning that the Rajasthan government has also sanctioned a three percent increase in the dearness allowance for state employees and dearness relief for pensioners. The DA for state government employees has now reached 63 percent. Chief Minister Bhajan Lal Sharma made this announcement last Friday. This increase will positively impact over seven lakh employees and five lakh pensioners in the state. Under the seventh pay scale, the enhanced dearness allowance and dearness relief will be applicable to state employees and pensioners starting July 1, 2026. The cash payment reflecting the increased DA will be disbursed to employees in December, along with their November salary.
Additionally, the four-month arrears from July 1 to October 31, 2026, will be credited to the General Provident Fund (GPF) accounts of the relevant employees. Pensioners will also receive the increased dearness allowance in cash starting July 1, 2026. This decision will add an extra financial burden of Rs 820 crore on the state government. Furthermore, the state government has opted to provide ad hoc bonuses to around 600,000 eligible employees, which will impose an additional financial burden of Rs 406 crore on the government.
Madhya Pradesh
However, Madhya Pradesh Chief Minister Mohan Yadav announced a two percent increase in dearness allowance for state government officials, employees, and pensioners. Employees will receive the increased dearness allowance from January 2026, while pensioners will receive the increased dearness allowance from July 2026. Chief Minister Mohan Yadav stated that the nine months’ arrears of dearness allowance from January to September will be paid in three equal monthly installments. The increased dearness allowance will be paid in cash from the October salary.
Chhattisgarh
The Vishnu Dev Sai government in Chhattisgarh announced a two percent increase in dearness allowance (DA) and dearness relief (DR) for government employees and pensioners. Following this decision, the rates of dearness allowance and dearness relief will increase from 58 percent to 60 percent. The new rates will be effective from November 1, 2026. This decision by the state government will benefit approximately 5.35 lakh employees and pensioners in the state. These include approximately 3.85 lakh government employees and 1.50 lakh pensioners.