Karnataka, Arunachal Pradesh and Gujarat hike dearness allowance ahead of Diwali
Several state governments have increased dearness allowance for employees and pensioners following a recent hike by the Union Cabinet.
The Karnataka, Arunachal Pradesh and Gujarat state governments have increased dearness allowance (DA) for employees and pensioners ahead of the Diwali festival, according to reports by Mint, The Indian Express and Deccan Herald.
In Karnataka, the government raised the DA and dearness relief (DR) from 15.75 per cent to 18 per cent of basic pay. This change, which applies to employees and pensioners drawing salaries under the 2024 Revised Pay Scales, is effective from 1 July 2026.
Arunachal Pradesh Chief Minister Pema Khandu announced a 3 per cent increase in DA and DR, moving the rate from 60 per cent to 63 per cent. The hike is effective from 1 July 2026 and will benefit state employees, pensioners, All India Services officers, and central government employees on deputation to the state.
The Gujarat government also approved a 3 per cent DA hike for approximately 9.69 lakh employees and pensioners. Senior minister Jitu Vaghani stated that the increase, effective from 1 July 2026, will result in an extra annual cost of Rs 1,569 crore for the state.
In Gujarat, the government will pay Rs 523 crore in arrears for four months, which will be credited to accounts alongside November 2026 salaries and pensions. The state has also announced a holiday on November 9 to allow for continuous Diwali celebrations.
Other states that have implemented DA increases include Himachal Pradesh with a 5 per cent hike, while Tamil Nadu, Rajasthan, Punjab and Gujarat have each increased it by 3 per cent.