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In this festive season, there is a good news for the government employees and pensioners of Karnataka. Giving a super gift of Diwali, the state government on Wednesday announced a huge increase of 2% in Dearness Allowance (DA).

After this new increase, the DA of the employees has jumped from 12.25% of their basic pay to 14.25%. This decision is going to double the brightness of Diwali for lakhs of families in the state, because now there will be an injection of extra money in the pockets!

When will this beneficial DA be implemented, and who will get the gift?

According to the official order of the government, these new rates of DA will be implemented retroactively from July 1, 2025. Meaning, the employees will not only get the increased salary, but will also get the entire outstanding arrears for the months of July, August, September and October. Not only will all the employees of the state government get this benefit, but also the staff of aided educational institutions and pensioners, including those taking family pension, will also benefit.

Why did DA increase, how will we get relief from inflation?

The meaning of DA is to provide relief to employees and pensioners struggling with inflation. This allowance is revised twice a year, in January and July. This step of the Karnataka government has come after the central government’s decision to increase DA. This will not only make the pockets of the employees heavy, but the market demand will also increase during the festive season. Employee unions have praised this and called it a positive step for the benefit of the workers.

What a burden on the government treasury, yet why is it necessary?

In this financial year, the state government has given this second gift of increasing DA. Earlier in May it was increased from 10.75% to 12.25%. Yes, this will put extra financial load on the government exchequer, but the government is considering it as a necessary step to boost the morale of the employees and make them financially strong.