Diwali Gift For Karnataka Govt Employees: DA Hiked To 18%, Check How Much Salary Will Increase & Arrears

Good news for Karnataka state government employees and pensioners just before Diwali as the Karnataka government has announced a fresh Dearness Allowance (DA) hike. The government has increased DA by 2.25%, from 15.75% to 18% of basic pay. The revised Dearness Allowance will be effective retrospectively from July 1, 2026.

The state government announced this decision on Thursday, November 5 and the Finance Department issued the government order on the same day.

This is the second DA hike announced by the Karnataka government in 2026. Earlier on May 11 this year, DA increased from 14.25% to 15.75%. Now, with this fresh hike from 15.75% to 18%, the DA rate has risen by a total of 3.75% during 2026.

Who Will Benefit From The Karnataka DA Hike?

The Karnataka DA Hike increase covers state government employees who are getting salaries under the 2024 Revised Pay Scales.

It is also extended to eligible retired state government employees and family pensioners under the applicable rules.

According to reports, the revised DA may also benefit zilla panchayat employees and aided school employees. However, employees in these categories should verify their eligibility as per the official government order and the applicable service rules.

How Much Will Your Salary Increase After a DA Hike?

A Dearness Allowance increase directly affects the DA component of an eligible employee's salary.

For instance, consider an employee with a basic pay of Rs. 50,000 per month.

As per the previous DA rate of 15.75%, the employee would receive Rs. 7,875 as Dearness Allowance.
Now, with the revised DA rate of 18%, the monthly DA would increase to Rs. 9,000. This means the employee would receive an additional Rs. 1,125 per month before applicable deductions.

Will Employees Receive Arrears?

Since the revised DA rate is effective retrospectively from July 1, 2026, eligible employees may be entitled to arrears for the period covered by the revision.

The actual arrears payable will depend on the employee's basic pay, eligibility and the implementation instructions issued by the Karnataka government.

What Is Dearness Allowance?

Dearness Allowance is an extra payment provided to government employees and eligible pensioners. It is calculated as a percentage of basic pay for employees and the applicable basic pension for pensioners. DA revisions are periodically announced to help employees and retirees maintain their purchasing power as the cost of essential goods and services changes due to rising inflation.

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