Gujarat announces 4% DA to govt employees, pensioners. All you need to know

Will cost the state exchequer a burden of Rs 930 crore in the current year

The Gujarat Government on Wednesday decided to give four per cent dearness allowance — two instalments — to the employees of the state government, panchayats and pensioners from July 1, 2016. This move will be a financial burden of Rs 930 crore on state exchequer, reported The Indian Express.

Key highlights

Around 8.20 lakh employees of the government, panchayats and pensioners will benefit from the decision.

State government will give two per cent DA from July 1, 2016 to December 31, 2016.

The same will increase to four per cent from January 1, 2017.

Will cost the state exchequer a burden of Rs 930 crore, including the arrears, in the current year. 

For rest of the years it will cost a burden of Rs 465 crore.

“The arrears for the said period will be given to the employees and pensioners in their salary of the current month. And this will cause a total financial burden of Rs 930 crore, including the arrears, on the state government in the current year. For the rest of the years, the increase in dearness allowance will cause annual financial burden of Rs 465 crore,” Deputy CM Nitin Patel said.

In Gujarat, there are a total 1,85,575 state government employees and 2,08,771 panchayat employees and 4,26,418 pensioners.

DA in other states

Bihar

The Bihar Cabinet increased the DA of state government employees, pensioners and family pensioners by four per cent in April 2017. They would now get a total DA of 136 per cent instead of the existing 132 per cent, cabinet secretariat department Principal Secretary Brajesh Mehrotra said.

The DA would be given to the employees with effect from January 1 this year, Mehrotra told reporters here in a post cabinet briefing. 

This would be applicable to those employees and pensioners who are getting revised pay scale according to the Sixth Pay Commission's recommendations, the Principal Secretary said. The revision of DA would have an additional burden of Rs 561.30 crore on the state exchequer annually, he said. 

Kerala

Kerala Government Employees, Teachers and Pensioners will get an enhanced Dearness Allowance of 12 per cent from January 2017. The new DA will be given in the January salary and will have retrospective effect from July 2016, the release said. 

For the employees the arrears will be merged with Provident Fund, while pensioners will get the arrears in cash. The enhanced DA will cause a monthly burden of Rs 86.07 crore and yearly burden of Rs 1032.84 crore to the state exchequer.