State government announces 2% DA hike for employees, launches ‘Arogya Sanjeevini’ cashless health scheme

Bengaluru: Bringing festive cheer to government employees ahead of Diwali, the Karnataka government on Wednesday announced a 2% hike in Dearness Allowance (DA). The revised rate will apply retrospectively from July 1, 2025, raising the DA from 12.25% to 14.25% of the basic pay.
The decision, issued through an official order, follows the Centre’s recent DA revision for its employees. Traditionally, the state government revises its DA after the Union government’s announcement. Earlier, the Central Government had increased DA by 3%, prompting the State Government Employees’ Association President, C.S. Shadakshari, to request a similar revision.
While the hike approved by Chief Minister Siddaramaiah is slightly lower than the 3% requested, employee unions have welcomed the gesture. “We thank the government for this timely revision, which will benefit lakhs of employees and pensioners,” said Shadakshari, calling it a much-needed relief during the festive season.
In addition to the DA increase, the state government has rolled out the “Karnataka Arogya Sanjeevini” health insurance scheme, effective October 1, 2025, offering cashless medical treatment for government employees and their dependent family members. The scheme replaces the earlier “Jyothi Sanjeevini” program and is implemented through the Suvarna Arogya Suraksha Trust.
Under the new plan, monthly contributions will be deducted from employees’ salaries based on their pay group. The deducted amounts will be deposited into the designated trust account via the treasury’s HRMS system. If both spouses are government employees, they can decide which one will make the contribution and must inform the Drawing and Disbursing Officer (DDO) accordingly.
The “Arogya Sanjeevini” scheme aims to provide quality healthcare at empaneled hospitals across the state, covering a wide range of treatments without out-of-pocket expenses. Officials said detailed guidelines and hospital lists will soon be made available to ensure smooth implementation.
With these twin measures a 2% DA increase and the launch of a comprehensive health scheme the government hopes to boost morale among its workforce and extend tangible welfare support amid rising costs of living and healthcare.