Tamil Nadu Increases Dearness Allowance by 3% for Government Employees Ahead of 2026 Elections

Chennai:

Tamil Nadu Chief Minister MK Stalin announced on Thursday a three percent increase in Dearness Allowance (DA) for state government employees, teachers and pensioners, marking a significant pre-election development.

The adjustment raises the DA rate from 55 percent to 58 percent, effective July 1, 2025, bringing it in line with the Central government's allowance rate. According to official information from the Department of Information and Public Relations, approximately 16 lakh government employees, teachers, pensioners and family pensioners will benefit from this increase, which will cost the state exchequer Rs 1,829 crore annually.

Chief Minister Stalin emphasized that government employees and teachers are essential in implementing welfare programs at grassroot levels, and affirmed the state's dedication to their wellbeing despite ongoing fiscal challenges.

This announcement comes at a strategically important time as Tamil Nadu prepares for the 2026 Assembly elections. The DMK government has been experiencing increasing dissatisfaction among government workers, particularly regarding its unfulfilled campaign promise to reinstate the Old Pension Scheme (OPS).