Tamil Nadu Chief Minister M.K. Stalin has announced good news for government employees, teachers, and pensioners. The state government has approved a 3% increase in Dearness Allowance (DA). With this hike, the DA rate has gone up from 55% to 58%.
This decision will benefit around 16 lakh employees, teachers, and pensioners across the state. Although this move will add an extra ₹1,829 crore yearly burden on the state budget, the Chief Minister said that the decision has been taken keeping the welfare and financial support of employees in mind.
Dearness Allowance (DA) is a part of the salary given to help employees deal with inflation and rising expenses. This hike will give some relief to Tamil Nadu employees and pensioners who are facing higher daily living costs. Tamil Nadu often revises DA in line with the central government’s DA updates.
Central Government Also Announced a 3% DA/DR Hike
Earlier, in October, the central government also approved a 3% increase in DA and DR for central government employees and pensioners.
This decision benefits:
- 49.19 lakh central employees
- 68.72 lakh pensioners
According to Union Minister Ashwini Vaishnaw, the new DA/DR rates will be effective from July 1, 2025, and will put an additional ₹10,083.96 crore yearly burden on the central exchequer.
This hike is based on the 7th Pay Commission formula, under which DA and DR are revised twice every year—in January and July.
Last month, the central government also approved performance-linked bonuses for railway staff, benefiting around 11.27 lakh railway employees.