Chennai: Tamil Nadu Chief Minister Vijay has announced a 2 per cent increase in Dearness Allowance (DA) for government employees, teachers and pensioners, raising it from 58 per cent to 60 per cent with retrospective effect from January 1, 2026.

The announcement was made through an official statement issued by the Tamil Nadu Chief Minister’s Office.

According to the government, the DA hike will benefit nearly 16 lakh government employees, teachers and pensioners across the state.

Additional burden of Rs 1,230 crore

The Tamil Nadu government stated that the increase in Dearness Allowance would place an additional financial burden of around Rs 1,230 crore on the state exchequer.

Despite the additional expenditure, the government said the decision was taken in recognition of the important role played by government staff and teachers in implementing welfare schemes and public administration.

The Chief Minister’s Office noted that employees and teachers continue to play a major role in shaping and effectively executing various government initiatives aimed at public welfare.

Government reiterates welfare focus

In the official statement, Vijay reiterated his administration’s commitment towards social welfare, equal opportunity and secular governance.

The statement emphasised that the government intends to function as a “government of the common people” and would continue introducing and implementing schemes aimed at improving public welfare across Tamil Nadu.

The DA revision comes amid broader welfare-focused initiatives announced by the state government in recent months.

Women’s rights grant scheme to continue

The Chief Minister had earlier announced that the May 2026 instalment of the Kalaignar Magalir Urimai Thogai scheme would soon be credited to beneficiaries’ bank accounts.

Under the scheme, eligible women receive financial assistance of Rs 1,000 per month.

The government clarified that although the scheme, originally launched under the previous M. K. Stalin-led DMK administration, may undergo restructuring, benefits for the existing 1.31 crore recipients would continue uninterrupted.

Officials said the continuation of the grant reflects the government’s focus on welfare support for economically vulnerable sections.

Review meetings on state finances

The announcements followed a high-level review meeting chaired by Vijay regarding the state’s financial position and the functioning of the Finance Department at the Tamil Nadu Secretariat.

The Chief Minister also reportedly chaired another review meeting concerning the Department of Industry, Investment Promotion and Commerce.

Government officials stated that the meetings focused on balancing welfare expenditure with fiscal management while maintaining developmental initiatives.

DA structure aligned with Centre

With the latest revision, Tamil Nadu has aligned its Dearness Allowance structure with the Centre’s recent DA increase for central government employees.

Traditionally, many states revise their DA rates following changes announced by the Union government, although implementation timelines and percentages may vary.

The retrospective effect from January 1, 2026 means eligible employees and pensioners are also expected to receive arrears for the intervening period.

Detailed government orders regarding the method and schedule of disbursement are expected to be issued separately.

Employee unions welcome decision

Employee unions and pensioners’ associations have welcomed the increase, stating that the revised allowance would provide some relief amid rising inflation and increasing living expenses.

Representatives from employee bodies said the hike would help government staff and retired personnel cope better with household expenses and cost-of-living pressures.

The Dearness Allowance is revised periodically to offset the impact of inflation on salaries and pensions.

The latest announcement is expected to benefit lakhs of families dependent on state government employment and pension benefits across Tamil Nadu.