Tamil Nadu CM Vijay announces 2% hike in Dearness Allowance for govt teachers, employees

The Tamil Nadu government has announced a 2% hike in Dearness Allowance (DA) for state government teachers, employees, and pensions, raising the rate from 58% to 60%.

The new scheme, announced by TN chief minister C Joseph Vijay on DA rates will be in effect from January 1, 2026. The move will benefit approximately 16 lakh government officials, teachers, and family pensioners across Tamil Nadu, according to an official press release.

The new scheme will result in an additional annual expenditure of Rs 1,230 crore for the state government, the release reads.

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'New DA will help teachers manage inflation, cost of living'

“The government led by the Hon’ble Tamil Nadu Chief Minister Thiru C. Joseph Vijay has assured that it will undertake various welfare measures for the people with public welfare as its priority. Government officials and teachers play an important role in designing and implementing these schemes effectively,” the statement said.

The state government has committed to allocating the necessary additional funds to cover the cost, prioritizing the financial well-being of its workforce despite the significant budgetary impact, it added.

The 2 percentage point increase is intended to help employees manage the rising cost of living and inflation, it said.

The release also stated that the TN government would allocate the required additional funds, reaffirming its commitment to the welfare of government officials, teachers, pensioners, and family pensioners.

CM Vijay has pledged to take measures to formulate and implement various welfare schemes for the people, it added.