The Punjab government on Wednesday increased the dearness allowance (DA) rate payable to its employees and pensioners by 7% , which will cost Rs. 744.48 crore to the state exchequer. The DA rates have been hiked from 58% to 65% with effect from January 1, 2012.
Finance Minister said that whole amount on account of enhanced DA due for the period from January 1, 2012 to June 30, 2012 would be credited to the general provident fund account of the employees. He said from July 1, 2012, enhanced DA would be paid in cash.
The dearness allowance has been increased on the pattern of Centre, he added. The finance minister said 7% DA increase would put an additional burden of Rs. 744.48 crore on the state exchequer.
He said in case of employees who have been appointed on or after January 1, 2004, enhanced dearness allowance due for the period from January, 2012 to June, 2012 would be paid in form of National Saving Certificates or Kisan Vikas Patras.
The finance minister said in case of pensioners, the entire amount on account of enhanced dearness allowance would be paid in cash.
Source : Hindusthan Times