Bhubaneswar: In a move aimed at providing financial relief amidst rising inflation, Odisha Chief Minister Mohan Charan Majhi on Friday announced a 2% hike in Dearness Allowance (DA) for employees of state-run Public Sector Undertakings (PSUs). The DA increase will be effective retrospectively from January 1, 2025.
DA Increased from 53% to 55%
According to an official release from the Chief Minister’s Office (CMO), the DA for PSU employees has been increased from 53% to 55% of their basic salary. The decision is expected to benefit approximately 8.5 lakh employees and pensioners, including those working in PSUs.
Arrears to Be Paid in Cash
The revised DA will be disbursed in cash, along with arrears for previous months since the hike is effective from January 1, 2025. This move is intended to provide immediate relief to employees, especially in light of increased living costs.
Dearness Relief for Pensioners Also Increased
In addition to the DA hike for serving employees, the Odisha government has also approved a 2% increase in Dearness Relief (also known as Temporary Increase or TI) for state government pensioners. This decision is expected to benefit thousands of pensioners and their families, ensuring improved financial stability for senior citizens.
Objective: Combat Inflation, Boost Financial Security
The primary goal of the DA hike is to help state employees and pensioners manage rising prices of essential goods and services, thereby reducing the financial burden and enhancing their purchasing power. Various employee and pensioner associations have welcomed the decision, calling it a “positive and timely step” toward economic security.
What is Dearness Allowance (DA)?
Dearness Allowance is an additional sum paid to government and public sector employees as a percentage of their basic salary to offset inflation. It is typically revised every six months or annually, depending on inflation trends.
For example, if an employee earns a basic salary of ₹40,000 and DA is 55%, their DA would amount to ₹22,000, making the total salary ₹62,000.
