The Finance Dept on Saturday issued order bringing to effect the 7 per cent hike in the DA of govt employees and pensioners announced by the government in January.
With this, the total dearness allowance will increase from the existing rate of 73 pc to 80 pc. The hike in DA would have a retrospective effect from July last year. With the increase, the employees and pensioners in the state would get the same benefit as that of the Central Govt employees and pensioners. The DA at the enhanced rate will be paid in cash along with the salary for the month of March.
The arrears for the period from 1 July 1, 2014, to Feb 28, would be merged with the Provident Fund. For the pensioners, the DA due from July 2014 will be paid along with the pension for March. Increase in DA would incur an monthly an additional burden of Rs 96.18 crore for the govt and an yearly burden of Rs 1,161.72 crore.
Click here for the order