The State Government on Wednesday announced release of additional dearness allowance (DA) at the rate of seven per cent to its employees and the employees of the grant-in-aid establishments to compensate for the price rise.
The increase, to be made effective from July 1, 2014, would raise the existing rates of DA from 100 per cent of the basic pay to 107 per cent. The additional dose of DA will be paid in cash and can be drawn in the pay bill of October 2014 payable in November 2014 and onwards. The arrear from the month of July to September 2014 on account of the enhanced DA shall not be drawn before the date of disbursement of the salary of October 2014. The impact on the State exchequer on account of the enhanced DA would be of the order of Rs 345.52 crore in the current financial year (i.e. for the period from July 2014 to February 2015). This will benefit about 4 lakh employees of the State Government.