Karnataka raises DA to 42.5% from 38.75% for state govt employees

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Karnataka CM Siddaramaiah on Tuesday said the dearness allowance (DA) for state government employees and pensioners will be hiked by 3.75% from 38.75% to 42.5% of their basic pay. The hike will be effective from January 1, 2024. Siddaramaiah announced that the hike will also be applicable to pensioners. 

He added that employees on central pay scale will see their DA increase to 50 per cent from the existing 46 per cent

Taking to X, Siddaramaiah said, “We have approved a revision of the Dearness Allowance to state government employees from 38.75% to 42.5%. For those on central pay scales, it’s up from 46% to 50%. This change represents a significant financial commitment of Rs 1,792.71 crore every year, reaffirming our dedication to our employees.” 

This is the second time when the new Congress government in Karnataka increased the DA for employees. In October  2023, the government revised the dearness allowance from the existing 35% to 38.75%. 

On March 7, the Union Cabinet decided to release an additional instalment of Dearness Allowance (DA) to Central government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2024. The increase will be four percentage points over the existing rate of 46% of the basic pay/ pension, to compensate against the price rise, the government said.

Other allowances, including house rent allowance, canteen allowance and deputation allowance, will also be increased subsequently.

Union Minister Piyush Goyal said the combined impact on the exchequer on account of both DA and DR would be Rs 12,868.72 crore per annum. “This will benefit about 49.18 lakh Central government employees and 67.95 lakh pensioners,” he said.

Dearness allowance is a component of the salary of government employees and pensioners, which is revised twice a year. 

As per the recommendations of the 7th Pay Commission, if the DA reaches 50 per cent, there will also be a hike in the house rent allowance, children’s education allowance, transport allowance, etc. The adjustment will affect approximately 49.18 lakh Central Government employees and 67.95 lakh pensioners, the government said.

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