Chennai: C. Joseph Vijay, the Chief Minister of Tamil Nadu, has announced an increase in Dearness Allowance (DA) for government employees and teachers from 58 per cent to 60 per cent, with effect from 1 January 2026.

The revised DA rate will benefit nearly 16 lakh government employees, teachers, pensioners and family pensioners across the state.

According to the state government, the decision is expected to place an additional annual financial burden of ₹1,230 crore on the exchequer.

The hike is aimed at providing relief to employees and pensioners in view of rising living costs and inflation.

Additionally, the C. Joseph Vijay-led government in Tamil Nadu is set to continue disbursing the monthly entitlement assistance of ₹1,000 to women beneficiaries to ensure there is no interruption in payments until the proposed increase to ₹2,500 is implemented, according to sources.

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The Chief Minister reportedly held a meeting with the finance secretary and senior officials at the Secretariat to review the release of the assistance amount, which is expected to be credited to beneficiaries’ bank accounts on Thursday.