Odisha govt announces 3% DA hike ahead of Diwali, disbursal effective immediately

Ahead of the Diwali festival, Odisha Chief Minister Mohan Charan Majhi on Thursday announced a three percent increase in the dearness allowance (DA) for state government employees. The revision raises the DA from 55 percent to 58 percent, effective retroactively from July 1, 2025.

The retroactive increase means that when employees receive their next paycheck, they will not only be paid the new, higher rate going forward but will also receive the difference in pay for the months between July 1 and the date of the announcement.

Cash Disbursement From October Salary

The enhanced dearness allowance will be reflected in the cash component of employees’ salaries for the current month of October.

The revised DA applies to all regular state government employees, including those serving in various departments and public sector undertakings.

Pensioners to Benefit

Pensioners will also receive a corresponding increase in Dearness Relief (DR). The three percent hike will be applied to pensions disbursed in October 2025.

Reports stated that the adjustment will cover all retired personnel who are currently receiving state pensions.

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Impact Of The Move

Approximately 8.5 lakh state government employees and pensioners are expected to benefit from the revised DA and DR.

The government confirmed that payroll and pension accounts will be updated automatically to reflect the changes, ensuring seamless implementation without requiring additional applications from employees or pensioners.