May salary windfall: TN, Bihar, Odisha greenlight DA hikes; all eyes on Bengal next
Millions of govt employees, pensioners receive a financial boost backdated to January, while Bengal too will decide on this at cabinet meeting on May 18
A wave of financial relief is sweeping across state government workforces as multiple states such as Odisha, Tamil Nadu and Bihar have announced hikes in Dearness Allowance (DA) and Dearness Relief (DR) for employees and pensioners.
Concurrently, West Bengal too is gearing up for a crucial decision regarding its own pay structures.
Bihar
On May 13, Bihar government set the ball rolling as the state cabinet approved a 2 per cent increase in Dearness Allowance (DA) for state government employees, pensioners and family pensioners getting revised salary or pension as per the 7th Pay Commission recommendations.
The cabinet greenlit a multi-tiered DA and Dearness Relief increase for state employees and pensioners, backdated to January 1, 2026. The breakdown of the revised rates includes:
7th Pay Commission: Raised by 2 per cent (from 58 per cent to 60 per cent)
6th Pay Commission: Raised by 5 percentage points (from 257 per cent to 262 per cent)
5th Pay Commission: Raised by 9 percentage points (from 474 per cent to 483 per cent)
Employees and pensioners covered under the 6th Central Pay Commission will receive a 5 percentage points increase in DA and Dearness Relief, from 257 per cent to 262 per cent, with effect from January 1, 2026.
Also read: Centre hikes DA by 2 pc; delay sparks unions’ push for 8th Pay Commission
For employees under the 5th Central Pay Commission, DA has been increased by 9 percentage points, from 474 per cent to 483 per cent.
Tamil Nadu
On May 14, Tamil Nadu followed suit with Chief Minister C Joseph Vijay announcing a similar 2 per cent DA hike for the state’s workforce and educators. The DA allowance rate climbed from 58 per cent to 60 per cent, effective from January 1, 2026.
The move will cost the state exchequer an additional ₹1,230 crore annually, with the government promising the immediate allocation of necessary funds, said a press release issued by the government. A massive pool of 16 lakh individuals, encompassing government officials, teachers, pensioners, and family pensioners, will receive the updated payouts and benefit from this hike.
In a statement on X, the office of the Chief Minister of Tamil Nadu shared, "Hon'ble Chief Minister of Tamil Nadu Thiru. C Joseph Vijay announces that the dearness allowance, currently at 58 per cent for government officials and teachers, will be increased to 60 per cent effective from 01.01.2026."
Odisha
In Odisha, it is 2 per hike in DA effective retrospectively from January. On May 15, Odisha Chief Minister Mohan Charan Majhi announced a 2 per cent increase in Dearness Allowance on May 15.
The DA rate has been scaled up from 58 per cent to 60 per cent. The hike takes effect retrospectively from January 1, 2026, and will be disbursed with the May 2026 salaries. The Temporary Increase (TI) for pensioners will mirror this 2 per cent bump in their May pensions.
Also read: Take-home pay shrinks despite salary hikes, thanks to new labour codes
With this hike, approximately 8.5 lakh state government employees and pensioners stand to benefit from this decision.
West Bengal
Meanwhile, anticipation is building in West Bengal as Chief Minister Suvendu Adhikari announced that critical decisions regarding DA and the Seventh Pay Commission will top the agenda for the government's second cabinet meeting on Monday, May 18.
"Next Monday, I will hold another cabinet meeting to discuss several pressing concerns," Adhikari stated.
Also read: CM Suvendu assigns key portfolios, DA and 7th pay panel talks next week
The Chief Minister indicated that the government may finally announce a decision to align state employee and pensioner DA with central government rates. Additionally, the cabinet is expected to deliberate on setting up the Seventh Pay Commission, a major step toward a comprehensive salary overhaul for the state's workforce.