The Gujarat government announced an 11% increase in the Dearness Allowance (DA) paid to its employees and pensioners on Monday.
Deputy chief minister Nitin Patel said the DA has been hiked from 17% to 28% with effect from July 1, 2021. The announcement comes just days after the union government approved a similar hike in DA for its employees and pensioners.
Patel, who also heads the finance ministry, said the DA hike would benefit more than 9.61 lakh state government employees, panchayat employees, and pensioners.
“The DA hike will come into effect from July 1. The DA for September will be paid along with that month’s salary,” he announced, adding the decision has been taken in consultation with chief minister Vijay Rupani.
The DA hike arrears for July will be paid along with the October salary, and the arrears for August along with the salary for January next year.
According to the state government estimates, the DA hike will put an additional monthly burden of Rs. 378 crore on the state exchequer.
The 9.61 lakh beneficiaries of the DA hike include 5.11 lakh government officers and employees and panchayat employees and over 4.50 lakh pensioners.
Separately, the deputy chief minister also announced the renovation of the 38-year-old Town Hall in state capital Gandhinagar at the cost of Rs. 17.21 crore. The renovation will also entail a new AC plant, upgrade of the green room, a new VIP suite room, parking amenities, soundproof system, waiting lounge, etc.