In a move benefiting a large section of the state’s workforce, the Karnataka government announced a significant hike in dearness allowance (DA) for employees and pensioners on Tuesday. The DA will increase from the existing 38.75 per cent to 42.5 per cent of basic pay, effective from January 1, 2024.
This announcement, made by Chief Minister Siddaramaiah, comes ahead of the upcoming Lok Sabha elections and reaffirms the government’s commitment to its employees. The revision represents an annual financial commitment of Rs 1,792.71 crore.
The hike extends to those receiving central pay scales as well, with their DA rising from 46 per cent to 50 per cent. Pensioners will also benefit from this adjustment.
This is the second DA increase for Karnataka government employees in five months. In October 2023, the DA was raised from 35 per cent to 38.75 per cent following pressure from employee unions. These unions had also demanded a salary revision and the implementation of the old pension scheme.
The DA hike is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW) to compensate for rising prices and the increasing cost of living. This move comes amidst similar decisions by the central government, which announced a DA increase to 50 per cent for its employees and pensioners in early March 2024.
