DA Hike Announced In Four States Ahead Of Diwali: Check New Rates

Following the 3 percentage point DA hike from 60 per cent to 63 per cent, announced by the central government on October 28, 2026, four state governments have also increased dearness allowance (DA) and dearness relief (DR) for their respective state government employees. These include Rajasthan, Tamil Nadu, Madhya Pradesh, and Chhattisgarh. The new rates will take effect from July 1, 2026, for both employees and pensioners. The announcement came as a festive bonanza for employees ahead of Diwali.

Here are the details of rate hikes in different states.

Rajasthan

The Rajasthan government approved a 3 percentage point increase in both DA and DR, making the effective rate increase from 60 per cent to 63 per cent under the seventh pay commission. According to the Chief Minister, Bhajanlal Sharma, it will benefit over seven lakh employees and more than five lakh pensioners. The revised rates will be effective from July 1, 2026, and will be paid along with the November salary (payable in December) to employees.

The Rajasthan government has approved a 3 percentage point increase in both DA and DR, raising the effective rate from 60 per cent to 63 per cent under the Seventh Pay Commission.

According to Chief Minister Bhajanlal Sharma, the hike will benefit over seven lakh employees and more than five lakh pensioners. The revised rates will be effective from July 1, 2026, and will be paid along with the November salary, payable in December. The four months (July to October 2026) will be deposited into employees’ General Provident Fund (GPF) accounts.

For pensioners, the increased DR in cash will be effective from July 1. Further, the state government has also announced an ad-hoc bonus for nearly 600,000 eligible employees, as per PTI. The DA and DR hike will put a financial burden of Rs 820 crore on the state exchequer, and the bonus involves an extra expenditure of Rs 406 crore.

Tamil Nadu

Chief Minister C Joseph Vijay announced a 3 per cent DA hike for Tamil Nadu government employees, teachers, pensioners, and family pensioners. The DA has now increased from 60 per cent to 63 per cent, effective from July 1, 2026. Approximately 1.6 million beneficiaries, including retirees, across the state are set to gain from the DA rate revision.

The increase in DA will result in an additional annual expenditure of Rs 1,858 crore for the state exchequer.

Madhya Pradesh

The Madhya Pradesh Chief Minister Mohan Yadav has also announced a 2 per cent DA hike ahead of Diwali for state government employees, officers, and pensioners. The increased DA is payable to employees from January 2026, with arrears for the nine months from January to September. This will be paid in three monthly instalments. The increased DA will be disbursed starting from October Salary (payable in November). For pensioners, DR will be effective from July 2026.

Chhattisgarh

The Chhattisgarh government has announced raising the DA on October 29, 2026. The Chief Minister Vishnu Deo Sai announced a 2 per cent DA hike for Chhattisgarh state government employees. It has been raised from 58 per cent to 60 per cent. Effective from November 1, 2026, the decision will benefit around 385,000 state government employees and 150,000 pensioners.