Karnataka govt hikes DA by 3.75% for state employees

A week after the Centre raised dearness allowance (DA) for Union government employees, a similar move has been announced by the Karnataka government, as it has decided to hike the DA for all state employees by 3.75% of the basic pay.

The latest hike would take the overall DA to 42.5%, as compared to 38.75% at present. The revised DA would be effective from January 1, 2024, and the dues would be paid along with the March salary, the government said.

The dearness relief (DR), which is paid to pensioners, would also be hiked by 3.75% to 42.5%.

Karnataka Chief Minister Siddaramaiah, while announcing the DA hike on March 12, said it will cost the exchequer an additional amount of around ₹1,793 crore per annum.

“We have approved a revision of the dearness allowance to state government employees from 38.75% to 42.5%. For those on central pay scales, it's up from 46% to 50%. This change represents a significant financial commitment of ₹1,792.71 crore every year, reaffirming our dedication to our employees,” Siddaramaiah tweeted.

Earlier, on March 7, the central government raised the DA and DR by 4% for its employees and pensioners, respectively. This would take the overall DA and DR to 50% of the basic pay/pension. The upward revision would cost the exchequer ₹12,869 crore per annum, the Centre said.

The periodic review and increase in DA and DR is in accordance with the norms laid down under the 7th Pay Commission. The allowance is aimed at offsetting the impact of inflation.

Over the past week, the governments of Jharkhand, Arunachal Pradesh, Himachal Pradesh, Gujarat and Tripura have also announced a hike in the DA and DR.