Tamil Nadu has increased the Dignity Allowance (DA) for state government employees and teachers by 2% with effect from January 1, 2026, Chief Minister C Joseph Vijay said today. According to the official government statement on May 14, the DA allocation goes from 58% of the basic salary to 60%.
The Tamil Nadu State Government will bear the additional annual expenditure ₹1,230 crore to increase DA, the statement said, reaffirming its “commitment to the welfare of government officials, teachers, pensioners and family pensioners”.
Notably, the hike is part of a series of directives ordered by the newly elected TVK government in Tamil Nadu.
The Tamil Nadu government’s announcement comes after the finance ministry on April 22 also increased DA for central government employees by 2%, effective January 1, 2026.
On May 2, the Indian Banks Association (IBA) followed suit, revising the DA for bank employees for the months of May, June and July 2026 – increasing the wages of laborers and clerks across the ranks. That is, on basic salaries between ₹48,000 a ₹1,17,000, the increase in DA ranges from ₹435 to ₹1050.
On May 13, Indian Railways also revised DA and bereavement relief (DR) for employees and pensioners by 2%, effective from January 1, 2026, increasing the component to 60% of basic pay from the earlier 58%. In its notification, the Finance Ministry said that the Ministry of Defense and the Ministry of Railways will issue separate orders for their personnel and employees.
Monthly support entitlement for women
Notably, the CM Vijay government has also said it will release ₹1,000 monthly claims on the accounts of the beneficiaries so that the financial assistance continues uninterrupted, ANI reported citing sources.
He added that Vijay met the state finance secretary and secretariat officials to ensure that ₹On May 15, the amount of 1,000 will be released, which will be credited to the bank accounts of the recipients.
The original scheme was announced by the previous DMK government. The newly elected government promised to increase the claim amount from ₹1,000 to ₹2,500 under Madhippumigu Magalir Thittam. However, the scheme will exclude families of state and central government employees.
More than 700 TASMAC liquor outlets will be closed
Further, as part of his new orders, CM Vijay also ordered the closure of 717 Tamil Nadu State Marketing Corporation (TASMAC) liquor outlets located near temples, schools, colleges and bus stands across the state.
He directed the officials to close TASMAC liquor retail outlets operating within 500 meters of places of worship, educational institutions and bus stands within two weeks.
(With input from agencies)
