Dearness allowance and relief for employees taking the seventh pay scale has increased from 7% to 9%. This hike will benefit 8.5 lakh government employees and 3.45 lakh pensioners of the Rajasthan government.
Jaipur: The Rajasthan Government has increased the Dearness Allowance (DA) for state government employees and Dearness Relief (DR) for pensioners by 2%. Chief Minister Vasundhara Raje announced the 2% hike for government employees on Tuesday. This move comes a day after the state government reduced the Value added tax (VAT) on fuel by 4 %.
Dearness allowance and relief for employees taking the seventh pay scale has increased from 7% to 9%. This hike will benefit 8.5 lakh government employees and 3.45 lakh pensioners of the state government.
The government will bear the additional financial burden of nearly Rs 547 crore during the current financial year as a result of the increase.
According to the release of Finance Department, the DA hike is effective from July 1 and will apply to pensioners as well as employees of panchayat and Zila Parishad. The government will deposit arrears in the EPF accounts, and the hike will be a part of their September salary. DA will be paid in cash to government employees who were appointed after January 1, 2004.
The DA and DR hike are in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
Government employees’ associations welcomed the increase in the DA, saying that it will come as a respite to government workers when the inflation was on the rise.
CM Raje has also announced a 4% reduction of Valve added Tax (VAT) on fuel prices on Sunday. It seems like the BJP government is making all possible efforts for the upcoming assembly elections, said one of the government employees.
What is Dearness allowance (DA)?
Dearness Allowance (DA) is a cost of living adjustment allowance paid to Government employees, public sector employees (PSE) and pensioners in India. The allowance is calculated as a percentage of a person’s basic salary to mitigate the impact of inflation on people.