The Odisha government has approved a 5% increase in Dearness Allowance (DA) for State Government employees drawing pay under the pre-revised Odisha Revised Scales of Pay (ORSP) Rules, 2008.
With the latest revision, the DA has been increased from 257% to 262% of the combined Basic Pay and Grade Pay, with retrospective effect from January 1, 2026.
The decision follows an Office Memorandum issued by the Department of Expenditure, Ministry of Finance, Government of India, which enhanced DA for Central Government employees under the 6th Central Pay Commission from 257% to 262% from the same date.
The state government said the decision was taken after considering its financial resources and fiscal targets under the Odisha Fiscal Responsibility and Budget Management (FRBM) Act, 2005.
Who Will Benefit?
The enhanced DA will be applicable to:
- State Government employees drawing pay under ORSP Rules, 2008.
- Employees of Aided Educational Institutions covered under ORSP Rules, 2008.
- Teaching and non-teaching staff of universities whose salaries are fully funded by the State Government, including employees under:
- ORSP (College Teachers) Rules, 2010
- ORSP (Medical College Teachers) Rules, 2010
- Subordinate Judicial Officers drawing pay under the Law Department Resolution dated August 2, 2010.
- Work-charged employees receiving regular pay under ORSP Rules, 2008.
- Job contract workers of the Consolidation and Settlement Organisation receiving fixed pay in regular scales along with sanctioned DA.
- State Government employees who were in service under ORSP Rules, 2008, as of July 1, 2025, but had retired or otherwise ceased to be in service before the issuance of the latest order.
When Will Employees Receive the Revised DA?
The revised DA will be paid along with the salary for July 2026, with bills to be submitted through Treasuries, Special Treasuries and Sub-Treasuries.
Arrears to Be Paid
Employees will also receive DA arrears for the period beginning February 2026 up to the month preceding the implementation of the revised payment.
The government is expected to issue detailed instructions regarding the disbursement of arrears.
Move Aligns State DA with Centre
The latest hike aligns Odisha’s DA for employees under the pre-revised ORSP Rules, 2008 with the Dearness Allowance announced by the Central Government for employees covered under the 6th Central Pay Commission, ensuring parity in compensation against inflation.
