The decision follows a similar increase for central government employees, whose DA was raised from 60 per cent to 63 per cent with effect from the July 1, 2026. Tamil Nadu CM C Joseph Vijay hiked DA from 60% to 63% for 16 lakh employees, teachers and pensioners, costing Rs 1858 crore, a day after granting a 5-year relaxation in the upper age limit.