Odisha Chief Minister Mohan Charan Majhi announced a three percent rise in the dearness allowance (DA) for state government employees on Thursday, ahead of the Diwali holiday. With retroactive effect from July 1, 2025, the adjustment increases the DA from 55 percent to 58 percent.
Because of the retroactive hike, workers will get the difference in pay for the months between July 1 and the announcement date in addition to the new, higher rate going forward when they receive their next pay cheque.

Payment of Cash Based on October Salary
The cash portion of employees' wages for the current month of October will reflect the increased dearness allowance.

All regular state government employees, including those working in other departments and public sector projects, are covered by the updated DA.

Benefits for Pensioners
A commensurate rise in Dearness Relief (DR) will also be granted to pensioners. Pensions paid out in October 2025 will be subject to the three percent increase.

According to reports, all retired employees now receiving state pensions will be affected by the modification.

Effects of the Transfer
The updated DA and DR are anticipated to benefit almost 8.5 lakh state government workers and retirees.

The administration affirmed that the adjustments will be instantly reflected in payroll and pension accounts, guaranteeing a smooth implementation without the need for extra applications from workers or retirees.