In a major relief for government employees and pensioners, the Tamil Nadu government has announced a 2% increase in Dearness Allowance (DA).
Chief Minister Joseph Vijay made the announcement on Thursday amid rising inflation and increasing living costs.
With this decision, the DA for state government employees, teachers, pensioners, and family pensioners has increased from 58% to 60%. The revised rates will come into effect from January 1, 2026.
Relief for 16 Lakh Families
According to the state government, around 16 lakh people will benefit from this move. The decision is expected to provide financial support to employees and pensioners who are struggling with higher daily expenses due to inflation.
The government said the DA hike was introduced to reduce the financial pressure on families and improve their economic condition.
Government’s Annual Expense to Rise
The increase in DA will also raise the state government’s expenditure. Officials said the decision will put an additional burden of nearly ₹1,230 crore on the government every year.
However, the Chief Minister stated that the move was necessary to support employees, teachers, and pensioners.
He added that the revised allowance will strengthen their financial stability and provide much-needed relief in the current economic situation.