7th Pay Commission DA Hike:

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More than a month after the central government increased Dearness Allowance (DA) for its employees, Gujarat government has increased DA by 11 percent for the state government staff and pensioners. The new rate will be effective retrospectively from July 1.

Nearly 9.61 lakh state government employees, as well as 4.5 lakh pensioners, covered under the 7th Pay Commission, will benefit from the revision in Dearness Allowance. According to a PTI report, the DA increase will cost the state government additional Rs 378 crore every month.

With this increase, now the state government employees will get DA at the rate of 28 percent, which was earlier at 17 percent. Dearness Allowances are calculated on the basis of the basic salary of employees.

Chief Minister Nitin Patel said the increment in DA was on a par with hike given by the central government to its employees.

The increment will reflect in the September salary. The employees will get the arrears of July in October and the August arrears will be paid in January 2022.

The central government increased DA for the employees and pensioners from 17 percent to 28 percent. This benefited nearly 50 lakh employees and retired staff.

In the recent months many states have increased Dearness allowance of employees, these include Assam, Uttar Pradesh, Himachal Pradesh, Rajasthan, Uttarakhand, Punjab, Tamil Nadu, Karnataka, and Andhra Pradesh, among others.

Central and state governments normally increase the Dearness Allowance of their employees twice a year. However due to the COVID-19 pandemic, the governments – both central and states – stalled the increments last year. DA is increased to offset the impact of inflation in employees’ salaries.