Just before Raksha Bandhan, there is important news for state employees and pensioners. The Uttarakhand government, led by Chief Minister Pushkar Singh Dhami, has announced a significant increase in dearness allowance (DA) for workers. This increase is set to bring relief to many who are dealing with rising costs of living.
Details of the DA Increase
The recent government order has raised the dearness allowance by 9 to 16 percent. This adjustment will benefit employees and pensioners on the fifth and sixth pay scales. According to the new order issued by Finance Secretary V. Shanmugham, the DA for employees and pensioners in the sixth pay scale has been increased by 9 percent. This raises their DA from 230 percent to 239 percent.
For those on the fifth pay scale, the increase is even more substantial. Their DA has been raised by 16 percent, moving it from 427 percent to 443 percent. This adjustment is aimed at helping employees cope with inflation and the higher cost of living.
Effective Dates and Arrears
The new DA rates will be effective from January 2024. Along with this increase, there will be payments for arrears dating back to January 2024. This means that employees and pensioners will receive additional payments covering the period from January to July 2024.
The Finance Secretary has also stated that employees in government-funded educational institutions will receive cash payments for arrears from January 1 to June 30, 2024. Starting July 1, 2024, these arrears will be included with their regular salary payments.
Pension Payment Updates
For those under the contributory pension scheme, there will be some changes as well. Pension contributions from employers will be deposited into new pension accounts. Any remaining balance will be provided in cash. This change aims to streamline pension payments and ensure that retirees receive their due amounts promptly.
Pending DA Increase for Seventh Pay Commission Employees
While the recent DA hike is a positive development for many, employees under the seventh pay commission will need to wait for their adjustments. Earlier this year, the state government had increased DA by 4 percent for employees in government, aided educational institutions, and urban local bodies. There are plans to increase this DA to 50 percent, but details and timelines for this further increase are still pending.
Conclusion
The Uttarakhand government’s recent DA hike is a significant move to support state employees and pensioners. With increases ranging from 9 to 16 percent, the new rates are designed to help mitigate the impact of inflation. The decision to pay arrears from January 2024 is an added benefit, providing immediate financial relief.
For those in government-funded educational sectors, the approach to settle arrears in cash and integrate them into regular payments starting July 2024 will help in managing financial planning. However, employees under the seventh pay commission will have to wait for further announcements regarding their DA adjustments.