Following the lead of the federal government, Karnataka declared a Dearness Allowance (DA) increase on Tuesday, following the 7th Pay Commission's recommendation. With effect from January 1, 2022, the state government has increased the rate of Dearness Allowance (DA) payable to state government employees in the 2018 Revised Pay Scales from 24.50 percent to 27.25 percent of basic pay.

Full-time government employees, zila panchayat employees, work-charged employees on regular time scales of pay, full-time employees of aided educational institutions, and full-time employees of universities on regular time scales of pay will be affected by these instructions. 

The 2.75 percentage point increase, according to Chief Minister Basavaraj Bommai, will cost the government Rs 1,447 crores each year.

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Full-time government employees, zila panchayat employees, work-charged employees on regular time scales of pay, full-time employees of aided educational institutions, and full-time employees of universities on regular time scales of pay will be affected by these instructions.

This order allows for an increase in Dearness Allowance that is payable in cash. The order said that "payments on account of DA involving fractions of 50 paise or more will be rounded off to the next rupee, while fractions less than 50 paise shall be ignored."