Odisha Government Boosts Employee Allowance: What You Need to Know

The Odisha government has announced a 2% increase in the dearness allowance for employees of state public sector undertakings, effective from January 1, 2026. This increase, moving from 58% to 60%, will benefit eligible employees under the revised pay scales of 2017. However, the additional allowance will be granted on a case-by-case basis, contingent upon meeting specific criteria, including the completion of statutory audits and timely loan repayments. Read on to learn more about the implications of this decision for PSU employees.

By Narendra Chaudhary Sep 20, 2026, 22:14 IST

Significant Increase in Dearness Allowance for PSU Employees

Bhubaneswar: The government of Odisha has announced a 2% increase in the dearness allowance (DA) for employees of state public sector undertakings (PSUs), effective retroactively from January 1, 2026.

According to an order released by the General Administration and Public Enterprises department on Saturday, the DA will rise from 58% to 60% for those earning salaries under the revised pay scales established in 2017.

The Finance department had previously issued a directive on May 18, permitting this DA increase from 58% to 60% starting January 1. Following thorough evaluation, the state government opted to extend this additional DA to employees of state PSUs that fall under the revised pay scales of 2017.

It is important to note that the additional DA will be granted on a case-by-case basis, only to those eligible employees of state PSUs that meet the government's specified criteria.

These criteria include the completion of statutory audits up to the financial year 2025-26. Additionally, the PSU must not have defaulted on loan repayments to banks, financial institutions, or the state government, nor on statutory payments related to employees, such as provident fund and Employees’ State Insurance contributions.

The department indicated that PSUs meeting these and other stipulated conditions will be qualified to provide the 2% increase in DA to their employees.