All the way into the welcome acts to lakhs of state government employees and pensioners, the state government has promulgated a decision to raise the DA. Arrears for the given period have also been confirmed to be paid alongside the DA raise, providing monetary relief to those employees who have been waiting for this decision.
The DA Hike Announcement – Everything New
As per the announcement, the Dearness Allowance has been raised by 4%, matching the central government offering by way of update. This brings the total DA for state government employees from 42% of basic pay to 46%.
The increase in DA is meant to compensate for rising living costs due to inflation and the increasing household expenses. The following are affected by this increase:
- State government employees
- Retired pensioners
- Employees of state-aided institutions
The hike will come into effect from January 1, 2025, and the arrears from January to June 2025 will be paid in one or more installments.
Estimated Financial Impact
The DA hike and arrear payment will, no doubt, weigh heavily on the state exchequer; the government however sees it as a necessary step to finance the morale of the work force.
For instance:
- Employees whose basic pay is ₹30,000 shall now have DA with a ₹1,200 monthly increment.
- Arrears for six months would amount to ₹7,200 and will be paid separately as per the Finance Department schedule.
Payout Schedule And Mode
- Revised DA in Monthly Salary: From the salary for the month of July 2025.
- Payment of Arrears: Probably in two or three installments, with details to be made available shortly.
The payment shall be credited to the employee’s salary account or pension account by themselves.
Reactions Of Employee Unions
Various government employee unions have welcomed the announcement, calling it “long overdue” and a positive step before the festive seasons. Some associations have also appealed to the government for revisions of HRA and other allowances at par with the DA adjustments.
Conclusion
The DA hike and payment of arrears by the State Government show the commitment of the State Government toward employee welfare. With rising prices, the decision is expected to bring financial relief to employees and pensioners.
Also Read:DA Hike Approved: 8.5 Lakh Govt Employees To Receive Arrears & Salary Boost