After a pause of more than a year due to the Coronavirus pandemic, the state governments across the country have started rolling out the Dearness Allowance (DA) increments in recent months. This week, two state governments announced DA hike for their employees and pensioners.
Gujarat government announced an 11 percent increase in Dearness Allowance for its employees and pensioners. The state government employees will now get 28 percent DA, which was earlier at 17 percent of basic pay. The increased rate will be applicable from July 1 with retrospective effect.
The revision in the Dearness Allowance will benefit nearly 9.61 lakh state government employees and 4.5 lakh pensioners. The DA increment will cost the government Rs 378 crore every month.
The increment amount will reflect in employees’ September salary. The arrears of July arrears would be paid in October and those of August in January next year.
Tamil Nadu Chief Minister M K Stalin also announced in the Assembly on Tuesday that the government will advance the Dearness Allowance increment by three months, with effect from January 1, 2022.
Earlier, the government had said that the DA hike for employees and pensioners will be from April 1, 2022.
According to a PTI report, association of government employees is demanding an 11 percent DA hike, which is on par with the central government’s increment rate of 11 percent.
This move will benefit 16 lakh state government employees and pensioners. The advancement of the DA hike would incur Tamil Nadu government an additional expense of Rs 1,620 crore.
According to a report, Arunachal government has also increased DA rate by 11 percent.
State governments usually announce DA increments soon after the rate announcement by the central government.
The Sentral government announced the Dearness Allowance increase from 17 percent to 28 percent under 7th Pay Commission in July. The DA hike had benefited nearly 50 lakh Central government employees, besides pensioners.
Before this, the government had postponed the DA hike since January 2020 due to the outbreak of COVID-19 pandemic.
Assam, Uttar Pradesh, Himachal Pradesh, Rajasthan, Uttarakhand, Punjab, Karnataka, and Andhra Pradesh, among others, have increased Dearness allowance of employees and pensioners in the recent months.
First Published: IST