Karnataka raises state employee and pensioner DA to 14.25% from July 1, 2025, amid inflation concerns.

Karnataka has raised its dearness allowance (DA) to 14.25% for state employees and pensioners, effective July 1, 2025, ahead of Diwali, marking the second hike this fiscal year. The increase follows a prior rise to 12.25% in May from 10.75%. The adjustment aims to offset inflation and rising living costs. Meanwhile, the central government approved a 3% DA hike effective July 1, 2025, bringing the total DA to 58% of basic pay, benefiting nearly 118 lakh employees and pensioners.