Karnataka hikes dearness allowance for state staff to 18%

Karnataka has raised the Dearness Allowance for its State government employees to 18 % of basic pay, up from the earlier 15.75 %. The increase takes effect from 1 July 2026 and was announced in a notification issued on 5 November 2026. The government called the move a Deepavali bonanza for its staff. The higher rate also applies to pensioners and family pensioners under the State scheme. The change is retrospective, so salaries and pensions from July onward will be adjusted to the new rate. ## Context Dearness Allowance is a cost‑of‑living component paid to government workers and retirees, usually revised periodically to match inflation. State governments often adjust DA each year to help employees cope with price rises. This latest rise aims to ease the financial pressure on Karnataka’s staff and retirees during the festive season.