The Karnataka government has raised the Dearness Allowance (DA) for state government employees and pensioners from 15.75% to 18%, with retrospective effect from 1 July 2026. The announcement, made on Thursday, 5 November 2026, coincides with the Diwali festival period and benefits employees drawing salaries under the 2024 Revised Pay Scales, as well as retired employees and family pensioners.

Key Details of the DA Hike

Deputy Chief Minister G. Parameshwara confirmed that the government had issued formal orders for the enhancement. The revised DA will be calculated at 18% of basic pay, up from the existing 15.75%. The same increase has been extended to retired state government employees and family pensioners in accordance with applicable rules.

The retrospective applicability from 1 July 2026 means eligible employees and pensioners will receive arrears for the period between July and the date of implementation — a significant financial benefit heading into the festive season.

What the Government Said

Parameshwara described government employees as 'the backbone of the administration,' noting that their 'dedication, professionalism and commitment' play a significant role in implementing state policies. He also acknowledged the contribution of retired employees who had 'devoted decades of their lives to public service.'

'At a time when the cost of living was rising, it was the government's responsibility to safeguard the financial well-being and dignity of serving and retired employees,' Parameshwara said. The DA revision, he added, reflected the government's commitment to supporting employees, pensioners, and their families.

Drought Relief for Farmers: A Diwali Double Announcement

Separately, the Karnataka government on Thursday disbursed the first instalment of drought relief to farmers, also timed for Diwali. Chief Minister D.K. Shivakumar and Deputy Chief Minister Parameshwara launched the release at Vidhana Soudha in Bengaluru, pressing the button to transfer the first tranche via Direct Benefit Transfer (DBT).

The government released ₹1,260 crore in the first phase of input subsidy. The total assistance is set at ₹5,000 per farmer — ₹2,500 per acre for up to two acres. Shivakumar confirmed that the second instalment of ₹2,500 would be released within the next 15 days.

'Today, the Deputy Chief Minister and I are pressing the button to release the first instalment of ₹2,500. In another 15 days, we will mobilise funds and provide another ₹2,500. We have taken this decision,' Shivakumar said.

Shivakumar acknowledged the limits of the relief, noting the assistance 'might not transform the lives of farmers' but said the government wanted to 'stand with them during the crisis, particularly with Diwali approaching.'

Broader Context and Impact

The twin announcements — a DA hike for government staff and drought relief for farmers — signal a deliberate pre-Diwali outreach by the Congress-led Karnataka government. State governments across India have periodically revised DA to align with central government benchmarks; Karnataka's move from 15.75% to 18% tracks the broader national trend of incremental DA revisions as inflation remains elevated. Notably, the retrospective July date ensures immediate arrear disbursements rather than a prospective revision, maximising the near-term impact for beneficiaries.

How swiftly the drought relief second tranche is disbursed, and whether the DA arrears reach employees before the end of the financial year, will be the two metrics to watch in the weeks ahead.