CHENNAI: Chief Minister C Joseph Vijay, on Saturday, announced a 3% increase in Dearness Allowance (DA) for State government employees, teachers, pensioners and family pensioners, with retrospective effect from July 1, 2026. The increase follows the Union government's decision to raise the DA for its employees from 60% to 63% with effect from July 1, 2026.
An official release here said the DA hike will benefit approximately 16 lakh employees, teachers, pensioners and family pensioners.
The revision will entail an additional annual expenditure of Rs 1,858 crore for the State government, which will allocate the necessary funds to meet the additional cost, the release said.
The release said the decision had been taken in recognition of the important role played by government employees and teachers in formulating and implementing welfare schemes.
The government expressed the hope that the increase would enable employees, teachers and pensioners to celebrate the forthcoming Deepavali festival with greater happiness.