In a significant pre-election announcement, Tamil Nadu Chief Minister MK Stalin on Thursday declared a three per cent hike in Dearness Allowance (DA) for state government employees, teachers and pensioners.

The revision – from 55 per cent to 58 per cent, effective July 1, 2025 – aligns the state’s DA rate with that of the Centre. According to the official release from the Department of Information and Public Relations, the increase will benefit nearly 16 lakh government employees, teachers, pensioners and family pensioners, and will cost the state Rs 1,829 crore annually.

Stalin said government staff and teachers play a crucial role in implementing welfare schemes at the grassroot level and that the state was committed to their welfare despite fiscal pressures.

The announcement comes at a politically sensitive time as the state gears up for the 2026 Assembly elections. The DMK government has been facing growing discontent among government staff, particularly over its unfulfilled poll promise to restore the Old Pension Scheme (OPS).