The Gujarat government on Monday announced an 11 per cent hike in dearness allowance (DA) for its employees and pensioners with retrospective effect from July 1. With this, the new DA rate will be 28 per cent, up from 17 per cent of basic salary, and this was at par with the one being provided to Central government staffers and pensioners, Gujarat Chief Minister Nitin Patel said.
“The Union government, in July, raised DA for its employees from 17 per cent to 28 per cent. Since the state government usually follows Central DA rates and does revisions accordingly, we too decided to hike the DA from 17 per cent to 28 per cent, to be effective from July 1,” he told reporters.
“This DA revision will benefit some 9.61 lakh state government and panchayat employees, as well as 4.5 lakh pensioners covered under the 7th Pay Commission. The hike will cost the state exchequer Rs 378 crore every month. The new DA will reflect in the salary of September,” Patel added.
He said July arrears would be paid in October and those of August in January next year.
News Source: Business Standard
