Summary of this article
Odisha, Tamil Nadu,and Bihar have announced a 2 per cent DA hike from 58 per cent to 60 per cent, effective retrospectively from January 1, 2026.
The states have hiked DA following the central government's hike announcement for central government employees on April 18 decision.
West Bengal is expected to decide on DA and a possible 7th Pay Commission on May 18, 2026.
Government employees across several states are set to receive a hike in their dearness allowance (DA) from next month, as state governments have been rolling out the increase following the centre’s 2 per cent DA hike announcement on April 18, 2026. Recently, three states, including Odisha, Tamil Nadu, and Bihar, announced a DA hike from 58 per cent to 60 per cent, with retroactive effect from January 1, 2026. This increase is expected to benefit over 24 lakh state government employees and pensioners in these three states. One more state (West Bengal) may also announce its DA-related decision on May 18, after a scheduled cabinet meeting of the newly elected government is held.
In Odisha, the Chief Minister Mohan Charan Majhi announced a 2 per cent hike in DA on May 15, which meant a raise from 58 per cent to 60 per cent. The hike is not prospective but will be effective retrospectively from January 1, 2026. Around 8.5 lakh government employees and pensioners in the state will benefit from the hike.
The Tamil Nadu government also followed suit with an identical increase for its public sector workforce, announced on May 14. After coming to power, the Chief Minister C. Joseph Vijay announced DA for government officials, pensioners, and teachers to be increased from 58 per cent to 60 per cent, effective from the start of the calendar year. This measure is expected to benefit around 16 lakh employees and retirees. The hike will cost the state exchequer an additional Rs 1,230 crore of annual expenditure to fund this hike.
Bihar announced the DA hike on May 13, 2026. Notably, the hike was not equal for all state employees. The state adopted a tiered approach, under which the employees under the 7th Pay Commission were given a 2 per cent DA hike from 58 per cent to 60 per cent.
Per media reports, those covered under the 6th and 5th Pay Commissions were given a 5 percentage point and 9 percentage point hike, respectively, to bring parity. Effectively, employees under the 6th Pay Commission got a hike from 257 per cent to 262 per cent, and for the 5th Pay Commission, the hike was from 474 per cent to 483 per cent.
Next in line to increase DA this month could be West Bengal, as the Chief Minister Suvendu Adhikari has scheduled a crucial second cabinet meeting on May 18 to discuss key matters, including the DA rates. The cabinet may decide to form the 7th Pay Commission, which will mean a comprehensive revision of salaries for state employees.
