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Deepavali gift: Karnataka hikes dearness allowance for government employees from 12.25 to 14.25%The DA hike will be applicable from July 1, 2025.
Bharath Joshi
Last Updated IST
<div class="paragraphs"><p>Karnataka Minister M B Patil</p></div>

Karnataka Minister M B Patil

Credit: DH Photo

Bengaluru: Ahead of Deepavali festival, the Karnataka government on Wednesday issued an order hiking dearness allowance (DA) for its employees from 12.25 per cent to 14.25 per cent of their basic pay. This will apply to pensioners, too.

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The DA hike will be applicable from July 1, 2025, the finance department said in its order.

This is the second DA hike in the current financial year. In May, the government increased DA from 10.75 per cent to 12.25 per cent of basic pay.

In another move, the government announced on Wednesday that it plans to start supermarkets for its employees on the lines of police and army canteens.

The proposed supermarkets will be operated by the state-run Mysore Sales International Ltd (MSIL).

"The initiative aims to make all essential daily-use items available to state government employees at discounted prices," Industries Minister MB Patil said, after holding a preliminary discussion with his officers on this plan.

"Similar canteen facilities are available for defence and para-military personnel. Karnataka has around six lakh government employees, and the proposed plan seeks to benefit their families," Patil said. He added that discussions would be held with the finance department to explore the possibility of availing subsidies or tax exemptions for the initiative.

Patil directed MSIL to submit a detailed feasibility report within a month on setting up the supermarkets. Initially, 4-5 outlets are planned in Bengaluru, expanding later to district headquarters across the state.

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(Published 15 October 2025, 21:50 IST)