In preparation for the upcoming Lok Sabha elections, the Karnataka government has decided to increase the Dearness Allowance (DA) for its employees and pensioners by 3.75%. This hike, effective from January 1, 2024, means that employees will receive their increased dues along with their March salaries.

The raise brings the total DA component for Karnataka government employees up from 38.75% to 42.5% of their basic salary. Chief Minister Siddaramaiah emphasized the financial commitment behind this decision, amounting to Rs. 1792.71 crores annually.

Furthermore, the Karnataka government has raised the DA from 46% to 50% for employees under various pay scales including UGC, AICTE, ICAR, and JNPC.

This move is part of a larger trend across states, as the Modi government recently increased DA by 4 percentage points to 50% in light of the upcoming elections. Union Commerce and Industry Minister Piyush Goyal highlighted the benefits for millions of employees and pensioners, despite the considerable annual cost to the exchequer.

Following suit, the Jharkhand government has also increased DA to 50% from January 1, benefiting a significant number of employees and pensioners. Additionally, Arunachal Pradesh announced a 4% hike, benefiting tens of thousands of state employees and pensioners.

Similar increases have been seen in other states like Himachal Pradesh, Tripura, and Gujarat, aiming to provide relief against the rising cost of living. These adjustments to the dearness allowance are crucial for maintaining the purchasing power of employees and pensioners amidst economic fluctuations.

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