THEBUSINESSBYTES BUREAU

BHUBANESWAR, JULY 23, 2026

In a relief for employees drawing salaries under the pre-revised Odisha Revised Scales of Pay (ORSP) Rules, 2008, the Odisha Government on Wednesday enhanced the Dearness Allowance (DA) by 5 percentage points, raising it from 257 per cent to 262 per cent with retrospective effect from January 1, 2026.

The Finance Department, in a notification, said the decision follows the Government of India's enhancement of Dearness Allowance for Central Government employees covered under the 6th Central Pay Commission. The State Government approved the increase after taking into account the state's financial resources and fiscal targets under the Odisha Fiscal Responsibility and Budget Management Act, 2005.

As per the notification, the revised DA will be calculated on the Basic Pay and Grade Pay taken together. The enhanced allowance will be applicable to State Government employees who continue to draw salaries under the pre-revised ORSP Rules, 2008.

The benefit has also been extended to employees of aided educational institutions receiving pay under ORSP-2008. In addition, teaching and non-teaching staff of universities drawing regular pay scales under ORSP-2008, including eligible university teachers under AICTE/UGC pay scales and medical college teachers, will also be covered.

The revised DA will further apply to subordinate judicial officers, work-charged employees, job contract workers of the Consolidation and Settlement Organisation receiving fixed pay in the regular scale, and employees who were in service as on July 1, 2025, but retired before the issuance of the notification.

The Finance Department has directed all drawing and disbursing officers to submit bills for the enhanced DA along with the salary bills for July 2026 onwards.

Eligible employees will also receive arrears for the period from February 2026 to June 2026. According to the notification, the arrears will be drawn and disbursed after the payment of the July 2026 salary.