The Karnataka government has approved an increase in dearness allowance (DA) for state government employees and pensioners from 14.25% to 15.75% of basic pay. The revised rate will take effect from January 1, 2026 and will be paid along with the May salary, according to an order issued by the state Finance Department.
The 1.5% hike applies to a wide section of state employees and retirees, including those working in state-run boards and corporations, pensioners, family pensioners, and beneficiaries of aided educational institutions. The order also covers employees working under pay structures linked to the University Grants Commission, the All India Council for Technical Education, and the Indian Council of Agricultural Research.
The Finance Department has directed all departments to factor in the revised DA while processing salaries for May 2026. The arrears for the period between January and April will be released along with the same payout. State officials have estimated that the move will benefit several lakh employees and pensioners across Karnataka.
DA hikes in Karnataka have followed an ongoing pattern of periodic revisions linked to the consumer price index. The state had last raised DA from 12.75% to 14.25% in 2025. The Finance Department’s circular did not specify the additional financial burden on the state exchequer for the latest revision.
The hike also comes at a time when several state governments are actively reviewing pay and allowance structures to bring them closer to Central government parity. Tamil Nadu, Maharashtra, and West Bengal have all seen DA-related developments over the past year, with parity disputes recently making their way to the Supreme Court in the West Bengal case.
