DA hike: Here's the full list of states that are considering Dearness Allowance increases for employees, pensioners
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India's public service employees are set to benefit from recent Dearness Allowance (DA) hikes, with the Centre increasing DA from 58% to 69% of basic pay effective January 2023. Various state governments, including Punjab and Himachal Pradesh, are also reviewing DA adjustments and addressing pending arrears, aiming to support employees amidst rising inflation. These moves reflect a broader trend of enhancing employee welfare and addressing long-standing demands for better compensation and job security.
A significant number of India's public service employees are set to benefit from their various state government's announcements on Dearness Allowance hikes. From the Centre, DA was hiked in April by 2% from 58% of basic pay to 69%, effective from 1 January this year.
The Centre usually updates DA biannually using data from the All-India Consumer Price Index (AICPI), new announcements are made in March and October, with rollouts in January and July. The move is aimed at countering cost of living expenses for employees and pensioners amid rising inflation.
Punjab government on 30 May said it will consider payment of pending DA and DR dues to state government employees (across categories) and pensioners for the period between 1 July 2021 to 31 March 2024. It added that a sub-committee will discuss payment of arrears for employees and pensioners based on revised salary and pension benefits for the period between 1 January 2016 to 30 June 2021.
The same day, the government added that it has approved the process to dismantle a decades-old contractual employment system and regularisation framework for over 65,000 workers across 51 government departments.
More recently, on 11 July, the Joint Coordination Committee (JAC) of Punjab Government Employees and Pensioners demanded that the state fulfil long pending demands and reach a quick resolution. They have demanded the following: Approval for 18% DA hike, restoration of the Old Pension Scheme (OPS), implementation of the 4-9-14 Assured Career Progression (ACP) Scheme, withdrawal of notifications related to probation and pay rules, regularisation of contractual, outsourced and other temporary employees, revision of pensions in line with the recommendations of the 6th Punjab state pay commission, restoration of withdrawn allowances, enhancement of retirement gratuity, implementation of the 6th Punjab state pay commission’s remaining recommendations, and extension of minimum wages to women working on honorarium under various government schemes.
Himachal Pradesh is reviewing DA and pending arrears for state employees and pensioners, Chief Minister Sukhvinder Singh Sukhu said, adding the government will safeguard their welfare and interests.
In June, the state also announced it will pay employees their full salary, including DA and house rent allowance (HRA), when they avail study leave for higher education purpose. Sukhu said employees are now entitled to 100% salary (last drawn) while on study leave — up from the 40% cap.
In July, the Himachal Pradesh State Forest Development Corporation (HPSFDC) said employees will receive a 3% hike in DA, with effect from 1 April 2025. The HPSFDC board has also approved bonus for 175 of the department's employees who draw up to ₹21,000 monthly salary. It also revised minimum wages for different categories of workers from ₹425 to ₹450 per day, with effect from 1 April 2026.
Expressing satisfaction with the 20% hike announced in the state budget last month, the Teachers' organisations in West Bengal said it expects another hike because the “previous government had left behind a huge backlog”. Swapan Mondal, general secretary of the Bangiya Shikshak O Shikshakarmi Samiti said, “We are broadly satisfied with the decision. At the same time, we would appeal to the government to clear the remaining 22% by December.”
The hike increases DA to 38% of basic salary for West Bengal state government employees and pensioners — still nearly half of the 60% for central government employees. Notably, Bhaskar Ghosh, convenor of the Joint Struggle Forum of State Government Employees told reporters that Chief Minister Suvendhu Adhikari has committed to implementing the 7th pay commission recommendations by January.
Earlier in May, Bengal approved formation of its 7th state pay commission to decide salary and DA hikes for state government employees, educational institutions, government corporation, board staff and state government-aided bodies. According to t...
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