7th Pay Commission: Ahead of mega assembly elections, the Uttar Pradesh Chief Minister Yogi Adityanath has surprised the state workers by announcing an increase in their dearness allowane (DA).
In line with the decision taken by Centre earlier this month, CM Adityanath has directed the finance department to immediately draw up a plan to increase dearness allowane of around 16 lakh state government employees and 12 lakh pensioners.
Due to the increase in DA, there will be an 11 per cent increase in the dearness allowance of the state employees, which will put an annual burden of 64 billion on the exchequer.
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Dearness allowance was suspended for 1.5 years due to the economic slowdown during the corona pandemic. State employees will get the dearness allowance for January 2020, July 2020, and January 2021.
The decision came amidst the DA hike by the Union government for central government employees from 17 percent to 28 percent.
The current hike would be calculated on the Basic Pay of the employees. For instance, an employee gets Rs 100 as basic pay. The DA amount at 17 percent rate comes around Rs 17. Now, the total DA is raised by 28 percent of Rs 100 which comes to Rs 28.
Dearness Allowance is a part of the salary that is aimed at combating inflation and revised twice a year -once in January and once in July.