Tamil Nadu, Rajasthan, Madhya Pradesh and Chhattisgarh Announce DA Hikes Ahead of Diwali 2026; Check Revised Rates

The Centre's DA announcement on October 28 was followed by a series of similar decisions at the state level. Within three days, Tamil Nadu, Rajasthan, Madhya Pradesh and Chhattisgarh announced higher dearness allowance for their government employees and pensioners ahead of Diwali. 

The increase is not the same everywhere. Tamil Nadu and Rajasthan have raised DA by 3 percentage points, while Madhya Pradesh and Chhattisgarh have gone with a 2-point increase. The dates from which employees will receive the revised allowance also differ. 

Tamil Nadu and Rajasthan Announce 3% Increase 

Tamil Nadu was the latest to join the list, announcing its decision on October 31. The state has raised DA from 60% to 63% of basic pay, effective July 1, 2026.  

Around 16 lakh employees, teachers and pensioners will benefit. The decision will cost the state ₹1,858 crore annually. 

Rajasthan had made a similar announcement on October 30. Its revised rate of 63% will cover more than 7 lakh employees and over 5 lakh pensioners.  

Arrears for July to October will be deposited into employees' GPF accounts. The state has also approved an ad hoc bonus for nearly 6 lakh eligible employees. 

Madhya Pradesh and Chhattisgarh Revise DA by 2% 

Madhya Pradesh announced a 2-percentage-point increase on October 30. The revised DA for employees will apply from January 2026, with arrears for January to September paid in three instalments. Chief Minister Mohan Yadav clarified that pensioners will receive the increase from July. 

Chhattisgarh has raised DA from 58% to 60%, effective November 1. The decision covers around 3.85 lakh employees and 1.5 lakh pensioners. It will add ₹36 crore to monthly state expenditure. 

Central Government DA Also Moves to 63% 

The state announcements came after the Union Cabinet approved a 3-percentage-point increase for central government employees.  

Their DA has moved from 60% to 63% of basic pay, effective July 1, 2026. 

Read More: Festive Demand Drives Growth for Indian Automakers in October 2026! 

Conclusion 

The four states have announced higher DA ahead of Diwali, bringing relief to employees and pensioners, though the revised rates and payment schedules vary. 

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