The Rajasthan government on Wednesday announced an increase in the dearness allowance of state government employees and pensioners from 17 per cent to 28 per cent. The decision will be applicable July 1 onward.
Earlier in the day, the Central government increased the rate of Dearness Allowance (DA) and Dearness Relief (DR) after a gap of one-and-half years from 17 per cent to 28 per cent, benefiting nearly 1.14 crore employees and pensioners. The decision on the DA and DR was taken at the Union Cabinet meeting chaired by Prime Minister Narendra Modi.
Information and Broadcasting Minister Anurag Thakur said that the new rates of DA and DR will impose an annual burden of Rs 34,401 crore on the exchequer, will come into effect from July 2021.
In a tweet this evening, Rajasthan Chief Minister Ashok Gehlot said, "We have decided to increase dearness allowance of Rajasthan state govt employees and pensioners from 17% to 28%. This will come into effect July 1, 2021, onward. Despite the difficult times due to Covid, state government will spend Rs 4,000 crore annually to support the employees," he wrote.
Earlier, the Union Government had frozen the three additional instalments of the DA and DR which were due from January 1, 2020, July 1, 2020 and January 1, 2021. The government said that there will be no payment of arrears this time, as the rate of DA/DR for the period from January 1, 2020 to June 30, 2021 shall remain at 17 per cent of basic pay/pension. The enhanced rate of DA and DR will be paid from July 2021.