Odisha CM Majhi Approves 2% DA Hike for PSU Employees
Move to benefit thousands of state PSU staff, effective from January 1, 2025
Bhubaneswar : Chief Minister Mohan Charan Majhi has approved a 2% hike in Dearness Allowance (DA) for employees of state-run Public Sector Undertakings (PSUs) in Odisha. With this decision, the DA for PSU employees will rise from 53% to 55%.
The order, which will be implemented retrospectively from January 1, 2025, is expected to provide significant financial relief to thousands of PSU employees working under the state government. Officials said the revised DA will be reflected in upcoming salary bills, while arrears from January to September will be released in phases.
The Chief Minister cleared the proposal during his visit to Jharsuguda, where he attended official engagements late into the night. Sources said the decision was taken after reviewing representations from employee unions, who had sought parity with central government employees on DA revisions.
The hike comes as part of the state government’s broader effort to extend financial benefits to its workforce. Recently, the state also cleared increments in pension allowances for retired employees, and the latest DA hike signals the government’s intent to maintain parity between serving and retired staff.
Dearness Allowance, revised periodically, is linked to inflation and aims to offset the rising cost of living. With this 2% revision, Odisha’s PSU employees are likely to see an increase in their take-home pay, particularly benefitting families amid rising prices of essential commodities.
Government insiders said the decision also reflects Chief Minister Majhi’s focus on strengthening employee welfare at a time when Odisha is working to boost industrial growth and public sector performance. “PSUs play a critical role in the state’s economy, and their employees are the backbone of operations. The DA revision is a recognition of their contribution,” said a senior official.
The move has been welcomed by trade unions representing PSU staff, who described it as a timely measure ahead of the festive season. “We had been pressing for this revision for several months. The government’s decision will boost morale and help employees cope with inflation,” a union leader said.
Economists note that while DA revisions add to the state’s wage bill, they also enhance spending power, which in turn stimulates the local economy. With Odisha witnessing strong revenue growth in recent years, the government has created room for welfare expenditures without compromising fiscal stability.
The latest hike will come at an estimated additional annual cost of several crores to the exchequer, though officials have not disclosed exact figures. However, given the state’s robust surplus position in 2023–24, the financial impact is expected to be manageable.
As Odisha continues to balance development priorities with employee welfare, the DA hike underscores the government’s approach of inclusive growth—addressing both economic expansion and the well-being of its workforce.
