Bhubaneswar: The Odisha government has increased the dearness allowance (DA) of employees working in state public sector undertakings (PSUs) by 2 percentage points, benefiting eligible employees with retrospective effect from January 1, 2026.
The General Administration and Public Enterprises department said in an order issued Saturday that the DA has been increased from 58% to 60% for employees drawing salaries under the revised pay scales of 2017.
The department said the Finance department had issued an order May 18 allowing the increase in DA from 58% to 60% with effect from January 1. After careful consideration, the state government decided to extend the additional DA to employees of state PSUs covered under the revised 2017 pay scales.
However, the additional DA will be sanctioned on a case-by-case basis only to eligible employees of state PSUs that meet the criteria prescribed by the government.
The criteria include completion of statutory audits up to the 2025-26 financial year. The concerned PSU should not have defaulted on repayment of loans to any bank, financial institution or the state government. It should also not have defaulted on statutory payments related to employees, including provident fund and Employees’ State Insurance contributions.
The department said PSUs fulfilling these and other prescribed conditions will be eligible to extend the 2 percentage point increase in DA to their employees.
