Bhubaneswar: The Odisha Government has announced a 5 per cent increase in Dearness Allowance (DA) for State Government employees drawing salary under the pre-revised ORSP Rules, 2008. With this revision, the DA has been enhanced from 257 per cent to 262 per cent, effective from January 1, 2026.

The Finance Department issued a notification stating that the decision has been taken following the Government of India's enhancement of Dearness Allowance for Central Government employees under the 6th Central Pay Commission. The State Government said it has approved the increase after considering the state's financial resources and fiscal targets under the Odisha Fiscal Responsibility and Budget Management Act, 2005. 

According to the notification, the revised DA will be calculated on the Basic Pay and Grade Pay taken together. The benefit will be available to State Government employees who continue to draw pay under the pre-revised ORSP Rules, 2008.

The enhanced DA will also apply to employees of aided educational institutions drawing pay under ORSP-2008. Besides them, the benefit has been extended to teaching and non-teaching staff of universities receiving regular pay scales under ORSP-2008, including eligible university teachers under AICTE/UGC scales and medical college teachers.

Subordinate judicial officers, work-charged employees, job contract workers of the Consolidation and Settlement Organisation receiving fixed pay in the regular scale, and employees who were in service on July 1, 2025 but retired before the issue of the notification are also covered under the order.

The Finance Department has directed that bills for the enhanced DA be submitted to treasuries along with the salary bill for July 2026 onwards.

Employees will also receive arrears for the period from February 2026 to June 2026. The arrears will be drawn and disbursed after the payment of the July 2026 salary, the notification said.