Bhubaneswar, Oct 16: Odisha Chief Minister Mohan Charan Majhi on Thursday announced a 3% hike in Dearness Allowance (DA) for state government employees and pensioners ahead of Diwali.

The move is expected to benefit over 8.5 lakh employees and pensioners across the state.

The revised DA will be effective retrospectively from July 1, 2025, raising the total DA from 55% to 58%.

The enhanced amount will be disbursed in cash along with the October salary, bringing much-needed relief and cheer to government staff during the festive season.

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In addition to the DA hike, pensioners will also receive a 3% increase in Time-bound Increment (TI), which will be reflected in their October pension disbursement.

About Dearness Allowance

Dearness Allowance (DA) is a cost-of-living adjustment, an increase made to the basic pay of government officials and public sector workers’ employees.

Dearness Allowance is calculated as a percentage of an citizen's basic salary to mitigate the impact of inflation on people. citizens may receive a basic salary or pension that is then supplemented by a housing or a dearness allowance, or both. The guidelines that govern the Dearness Allowance vary according to where one lives. Dearness Allowance is a fully taxable allowance.

The two types of Dearness Allowance are:

Dearness Allowance given under terms of employment.
Dearness Allowance not given under the terms of employment.