Chennai: Tamil Nadu Chief Minister C. Joseph Vijay has ordered a three-percentage-point increase in dearness allowance for government employees and teachers, with pensioners and family pensioners also benefiting from the revision announced ahead of Deepavali.  

The increase, which raises the allowance from 60 per cent to 63 per cent, will take retrospective effect from July 1, 2026. Approximately 16 lakh employees, teachers, pensioners and family pensioners will benefit, according to a notification issued by the state government.

The measure will impose an additional annual expenditure of Rs 1,858 crore on the state exchequer. The government said it would allocate the additional funds required to implement the revision as part of its commitment to the welfare of serving and retired personnel.

The decision follows the Union government’s increase in dearness allowance for central government employees from 60 per cent to 63 per cent, effective July 1.

Tamil Nadu has adopted the same revised rate and commencement date for its employees and teachers.

In its notification, the government highlighted the contribution of government officials and teachers to the formulation and implementation of welfare schemes. It said their work played an important role in ensuring that programmes designed for public welfare were implemented effectively.

The administration was introducing and carrying out various initiatives for the benefit of the people, the notification said.

Government employees and teachers were key participants in this process, contributing both to the planning of programmes and their delivery. Recognising these responsibilities and giving priority to employee welfare, the Chief Minister considered the revision following the Centre’s announcement and ordered the corresponding increase for the state workforce, the government said.

The notification also emphasised the inclusion of pensioners and family pensioners among the beneficiaries. The financial commitment, it said, reflected the government’s concern for all four groups covered by the announcement.

With Deepavali approaching, the government said the increase would help beneficiaries celebrate the festival with greater happiness.

The announcement places the welfare of employees, teachers and pension-dependent households at the centre of the festive-season measure.

Although the revised allowance takes effect retrospectively from July, the notification provided in the announcement does not specify when arrears will be paid. It confirms the effective date, the revised rate, the estimated number of beneficiaries and the recurring annual expenditure the state will bear under the decision.