Dearness Allowance (DA) @ 5% Enhanced from 252% to 257% w.e.f. 01.07.2025 for State PSUs – Public Enterprises Dept OM No.580 Dated 26.02.2026
Dearness Allowance (DA) Enhanced @ 5% from 252% to 257% w.e.f. 01.07.2025 for State PSUs
Department: Public Enterprises Department, Government of Odisha
OM No: 580 | Date: 26.02.2026
Published: 26 February 2026 Applicable to: Employees of State Public Sector Undertakings (PSUs) in Pre-Revised Scale of Pay, 2008
Following Finance Department OM No.35884/F dated 30.12.2025 (which enhanced DA @ 5% for State Govt employees in Pre-Revised Scale 2008), the Public Enterprises Department has now extended the same benefit to eligible employees of State PSUs.
DA raised from **252% to 257%** with effect from **01.07.2025** — subject to strict eligibility conditions.
Eligibility Criteria for DA Enhancement in PSUs
The additional DA shall be sanctioned only for PSUs fulfilling **all** of the following conditions (case-to-case basis):
- Completion of Statutory Audit up to FY 2024-25.
- No default in repayment of loan to any Bank / Financial Institution or to State Government.
- No default in payment of statutory dues of employees (Provident Fund, ESI, etc.).
- Not receiving any budgetary grant or subsidy (partly or fully) for Administrative / Establishment expenses.
- Adequate internal resources to bear the additional financial burden from own sources (no Govt assistance).
- Signing of MoU with Administrative Department for FY 2025-26.
- PSU must be a **profit-making organization**.
- Additional financial burden of DA increase borne entirely by the PSU from its own resources (no Govt exchequer support).
Procedure for PSUs to Claim DA Enhancement
- Categorized PSUs: Send proposal to respective Administrative Department after Board of Directors approval.
- Non-Categorized PSUs: Send proposal through Administrative Department to Public Enterprises Department after Board approval for case-to-case consideration.
Important Warnings:
- DA enhancement is **not automatic** – strict compliance with all 8 conditions mandatory.
- Any PSU not meeting even one condition will **not** be eligible.
- No financial assistance from Government will be provided for this DA increase.
- PSUs must prove profitability & self-sustainability.
📄 Official OM (PDF): View / Download
WhatsApp Telegram Facebook PDFFrequently Asked Questions (FAQ)
1. What is the new DA rate for State PSU employees in Pre-Revised Scale 2008?
DA enhanced by **5%** from **252% to 257%** with effect from **01.07.2025**.
2. Is this DA increase automatic for all PSUs?
No – only eligible PSUs fulfilling **all 8 strict conditions** (audit, no loan default, no PF/ESI default, profit-making, self-funding, etc.) will get approval on case-to-case basis.
3. Who bears the additional financial burden of this DA increase?
The concerned PSU must bear it entirely from **own resources** – no assistance from Government exchequer.
4. How should PSUs apply for this DA enhancement?
Categorized PSUs → to Administrative Department after Board approval.
Non-categorized PSUs → through Administrative Department to Public Enterprises Department.
5. Which earlier OM is followed for State Govt employees?
Finance Department OM No.35884/F dated 30.12.2025 (basis for extending same benefit to eligible PSUs).