DA hike: Karnataka increases dearness allowance by 2.5%, and Arunachal Pradesh by 3% ahead of Diwali — Check details

DA hike news: The Karnataka and Arunachal Pradesh state governments have become the latest to increase dearness allowance for employees and pensioners after the Union Cabinet hiked DA by 3% for central government counterparts to 63% of basic pay.

Karnataka hikes DA for employees, pensioners to 18%

Karnataka on 5 November hiked DA and dearness relief (DR) for state government employees and pensioners drawing salaries under the 2024 Revised Pay Scales by 2.5%, from 15.75% to 18%, with effect from 1 July 2026, PTI reported.

“Government employees are the backbone of our administration. Their dedication, professionalism and commitment are instrumental in translating our policies and programmes into meaningful outcomes for the people of Karnataka,” Deputy Chief Minister G Parameshwara said in a post on social media platform X (formerly known as Twitter).

“Equally invaluable is the contribution of our retired employees, who have devoted decades of their lives to public service and the progress of our state,” the statement added. It further said, “At a time when the cost of living continues to rise, it is our responsibility to safeguard the financial well-being and dignity of those who serve and have served our state. This enhancement is a recognition of their contribution and a measure of our commitment to supporting them and their families.”

“The government remains committed to protecting the interests of employees and pensioners and recognising their contribution to public service, Parameshwara said.

Arunachal Pradesh hikes DA, DR by 3%

Arunachal Pradesh increased DA and DR for state government employees and pensioners by three percentage points, from 60% to 63%, effective from 1 July thsi year, as a “Diwali bonanza”, Chief Minister Pema Khandu announced in a social media post on Friday.

“I am pleased to announce that the government of Arunachal Pradesh has approved a 3% hike in DA for state government employees and DR for pensioners and family pensioners, increasing the rate from 60% to 63%, with effect from 1st July 2026,” he said in a post on X.

The enhanced DA and DR will also benefit All India Services (AIS) officers serving under the state government as well as central government employees on deputation to Arunachal Pradesh and will be paid along with the salary and pension for the month of November, he added.

The CM said that arrears for the four-month period from July to October will be paid in cash and credited directly to the respective salary accounts of serving employees and the pension accounts of pensioners and family pensioners.

DA hike announcements ahead of Diwali 2026

DA is a percentage of employees’ basic pay that aims to mitigate the impact of the rising cost of living and inflation. As per the 7th Central Pay Commission (CPC) recommendations, the Centre revises DA twice annually, using data from the All-India Consumer Price Index (AICPI).

These announcements usually come in March and October, with rollouts in January and July. Effective from 1 July, the Centre’s “Diwali gift” is the second DA increase this year, after it hiked the component by 2% in April from 58% to 60%, effective from 1 January for more than 1 crore beneficiaries.

Notably, besides the Finance Ministry’s announcement on 28 October, state governments also hiked DA for employees and pensioners ahead of Diwali. This includes a 5% hike by the Himachal Pradesh government, 3% DA hikes each by the Tamil Nadu, Rajasthan, Punjab and Gujarat governments, and 2% increases by the Chhattisgarh, Madhya Pradesh and Kerala governments.

(With inputs from Agencies)