Chennai: Tamil Nadu Chief Minister C. Joseph Vijay on Thursday announced a two per cent increase in Dearness Allowance (DA) for state government employees, teachers, pensioners, and family pensioners, raising it from 58 per cent to 60 per cent with retrospective effect from January 1, 2026. 

The announcement was made through an official government press release issued by the Department of Information and Public Relations.

The move is expected to benefit nearly 16 lakh government employees, teachers, pensioners, and family pensioners across the state.

According to the statement, the decision was taken after the Union government enhanced the Dearness Allowance for Central government employees from 58 per cent to 60 per cent with effect from January 1, 2026.

The Tamil Nadu government has now extended the same benefit to state government staff and pensioners.

The state government said the hike reflects its commitment towards the welfare of its employees and teachers, who play a crucial role in implementing welfare schemes and public service initiatives across the state.

The press release noted that the administration led by Chief Minister Vijay has been focused on introducing and effectively implementing several people-centric welfare measures.

Officials said the increase in DA would result in an additional annual expenditure of approximately Rs 1,230 crore for the state exchequer. Despite the financial burden, the government has decided to allocate the necessary additional funds, keeping in mind the welfare of employees, teachers, pensioners, and family pensioners.

The announcement comes at a time when the newly elected Tamil Nadu government is rolling out a series of administrative and welfare-related measures following the 2026 Assembly elections.

Employee unions and pensioners’ associations have welcomed the move, stating that the hike would provide relief amid rising living costs and inflationary pressures.

The revised Dearness Allowance will be implemented retrospectively from January 1, 2026, and the government is expected to issue detailed orders regarding disbursement and arrears soon.

(IANS)