In a major relief for State government employees and pensioners, the Odisha government on Friday announced a 2% hike in Dearness Allowance (DA). The announcement was made by Chief Minister Mohan Charan Majhi through the Chief Minister’s Office (CMO) in Bhubaneswar.

Also Read: Centre hikes DA, DR by 2% to 60% for Govt employees, pensioners

With the latest revision, the Dearness Allowance for State government employees has been increased from 58% to 60%. The enhanced DA will be implemented retrospectively from January 1, 2026.

According to the official notification, employees will receive the revised allowance in cash along with their salary for the month of May. Along with serving employees, the State government has also approved a corresponding two per cent increase in Temporary Increase (TI) for pensioners.

Pensioners are expected to receive the revised TI amount along with their May pension payment. The decision is likely to provide significant financial relief to lakhs of employees and retired government personnel amid rising inflation and increasing household expenses.

The Odisha government stated that nearly 8.5 lakh State government employees and pensioners will benefit from the latest enhancement in DA and pension-related benefits.

The announcement has been widely welcomed by employee associations and pensioners’ groups, many of whom had long been demanding a revision in the Dearness Allowance in line with inflationary trends and the rising cost of living.

The latest hike is also being viewed as a key welfare measure by the State government, aimed at strengthening financial support for employees and pensioners across Odisha.