Good news for 9.69 lakh government employees ahead of Diwali; this state has increased their DA..

Following the central government, state governments have also begun increasing the Dearness Allowance (DA). Shortly after news emerged of an increase in DA in Punjab, the Gujarat government has now announced a similar hike. On Wednesday, the state government announced a 3 percent increase in the Dearness Allowance (DA) for its 4.62 lakh serving employees and 5.07 lakh pensioners. This will provide relief to over 9.69 lakh individuals ahead of Diwali. Let us look at the details of the announcement made by the state government.

Announcement of a 3 percent DA hike
Senior cabinet member and government spokesperson Jitu Vaghani stated that the decision was taken during a state cabinet meeting chaired by Chief Minister Bhupendra Patel. This increase will be effective from July 1, 2021, and is in line with the central government's decision. A week ago, the Union Cabinet had approved a 3 percent hike in the Dearness Allowance (DA) for central government employees and pensioners. Speaking to reporters in Gandhinagar, Vaghani explained that the four months' worth of arrears—covering the period from July to October 2021—will be paid in a single installment along with the salaries and pensions for November.

An additional financial burden of Rs 1,569 crore
The benefit of this DA hike will extend to employees of state government departments, panchayat services, and other organizations, as well as to retired employees covered under the Sixth and Seventh Pay Commissions. The minister noted that the state government will incur an expenditure of Rs 523 crore for the payment of arrears, while the DA hike itself will result in an additional annual financial burden of Rs 1,569 crore. Vaghani stated that the decision aims to recognize the contributions of government employees who work to ensure good governance, while also providing them with some financial relief during the festive season.

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