RANCHI: The Jharkhand Government on Tuesday announced a hike in dearness allowance (DA) for its
employees. According to the decision taken during the Cabinet meeting, the new DA rate will be
28 per cent, up from 17 per cent.
The increase in DA will be applicable from July 1.
Notably, the decision is in line with the decision taken by the Central Government earlier this month, under which it was decided to remove the ban on dearness allowance increasing from 17 per cent to 28 percent.
With the increase of DA by 11 per cent more than 3.5 lakh government employees will be benefitted, at the same time the State government will bear an expense of Rs 1,000 crore on the exchequer.
According to Cabinet Secretary, Vandana Dadel, “The State Government has decided to increase the DA of State government employees by 11 per cent. The DA will be hiked from existing 17 per cent to 28 per cent.”
The hike in DA is seen as a double bonanza for State government employees as last month, the State Cabinet raised the government’s contribution to the National Pension Scheme to 14 per cent of basic salary from the current 10 per cent.
Approval for 19 proposals was given during the Cabinet meeting on Tuesday.