According to an order issued by the state's principal secretary finance, Navin Kumar Choudhary, the revised rate of DA would be 139 per cent after this 3 per cent increase.
The finance department also said the arrears for July- December 2017 will be paid in cash to the employees and will form part of the salary from January 2018 onwards.
According to the order, the enhancement in DA will also apply to the work charge/whole time contingent paid employees working in the regular timescale.
He had also announced increase in the refreshment charges of the employees for working overtime during the legislature session from the existing Rs 7,500 to Rs 10,000.
"This is for the first time in decades that due to the fiscal stabilisation, the arrears on account of DA are being paid in cash," Drabu said.
The minister said the far-reaching fiscal management measures initiated by the present government during the past three years have resulted in discernible stabilisation of the resource position, enabling the finance department to extend several monetary benefits to its employees and put in place various welfare initiatives for other sections of the society including industry, trade, agriculturists, horticulturists, women, girls, students, youth and destitute.
He said the present government has during the past three years announced a hike of around 35 per cent DA for the employees and pensioners besides increasing the Durbar Move TA from Rs 10,000 to Rs 15,000 and Temporary Move Allowance from Rs 1,500 to Rs 2,000 per month.
"We are also implementing the 7th Pay Commission Recommendations from April 2018, ahead of almost all the states in the country," he said and added that the best part is the government ensured that the employees don't come out on roads even for a single day during the past three years to get these due monetary benefits.
"As already announced we are also in the process of regularising the daily rated, casual, seasonal and other workers and the process has already been set into motion," he said.
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