Bengaluru: Karnataka has announced a Deepavali bonanza for state govt employees, raising dearness allowance (DA) by 2.25 percentage points, from 15.75% to 18% of basic pay, with retrospective effect from July 1, 2026.A notification issued Thursday said the revised DA would also apply to pensioners and family pensioners.The hike comes amid rising household expenses, with prices of everyday essentials such as milk and curd, besides bus fares, having gone up significantly in recent days.The increase is expected to provide some relief to govt employees and pensioners, cushioning the impact of rising cost of living and offering a measure of respite ahead of Deepavali.However, the additional allowance is unlikely to fully offset the recent increase in household expenses.With the revision taking retrospective effect from July 1, employees and pensioners will also be entitled to arrears for the intervening period.
