Karnataka Government Raises DA to 42.5% for State Govt Employees and Pensioners

In a move set to positively impact a substantial portion of Karnataka’s workforce, Chief Minister Siddaramaiah has announced a significant increase in the dearness allowance (DA) for state government employees and pensioners. Effective from January 1, 2024, the DA has been raised from the existing 38.75% to 42.5% of their basic pay.

Karnataka Chief Minister Siddaramaiah emphasized that this adjustment will also extend to pensioners, underscoring the measure’s broad reach. The announcement, made on Tuesday (March 12), is seen as a notable pre-election move ahead of the Lok Sabha elections.

“This change represents a significant financial commitment of Rs. 1,792.71 crore every year, reaffirming our dedication to our employees,” stated Karnataka CM Siddaramaiah on platform X.

Meanwhile, on March 7, the Union Cabinet had greenlit a hike in dearness allowance to 50% of the basic pay for central government employees and dearness relief to pensioners. Union Minister Piyush Goyal, announcing the decision, highlighted its necessity in mitigating the impact of rising prices.

Expected to benefit over a crore employees and pensioners nationwide, this adjustment aligns with efforts to address the repercussions of escalating living costs. The calculation of Dearness Allowance is based on the latest Consumer Price Index for Industrial Workers (CPI-IW), released monthly by the Labour Bureau, and is determined as a percentage of the basic salary.