Odisha CM Announces 2% DA Hike for PSU Employees and Pensioners

Odisha Chief Minister Mohan Charan Majhi has declared a 2% rise in Dearness Allowance (DA) for employees of state-run Public Sector Undertakings (PSUs). With this change, the DA has moved from 53% to 55% of the basic salary, effective retrospectively from January 1, 2025.

DA Hike: Impact on Employees and Pensioners

The revision is expected to benefit around 8.5 lakh employees and pensioners across the state, including those working in PSUs. The revised DA will be paid in cash along with salaries, covering arrears for previous months as well. 

Alongside this, a 2% increase in Dearness Relief (Temporary Increase) has been sanctioned for government pensioners, offering further support to retired staff and their families. Employee and pensioner groups have welcomed the step as a boost to financial security.

Understanding Dearness Allowance 

Dearness Allowance is an additional payment provided to government staff, PSU employees, and pensioners to mitigate the effects of inflation. 

It is calculated as a percentage of the basic pay or pension and reviewed periodically, generally twice a year. For instance, if a government employee has a basic salary of ₹40,000 and the DA rate is 55%, the DA portion becomes ₹22,000, making the total salary ₹62,000. 

The allowance is designed to preserve purchasing power and ease the impact of rising living costs.

Read More: Odisha Government Increases Dearness Allowance by 2% for Government Employees!

Conclusion 

The Odisha government’s decision to raise Dearness Allowance and Dearness Relief by 2% offers direct relief to over 8.5 lakh employees and pensioners. By addressing inflationary pressures, the move strengthens financial stability, safeguards purchasing power, and reinforces the administration’s commitment to supporting its workforce and retired staff.

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