Government Employees in Chhattisgarh and Rajasthan to Get Dearness Allowance Hike
In a move that is likely to benefit millions of government employees, the state governments of Chhattisgarh and Rajasthan have announced a hike in dearness allowance (DA).
Chhattisgarh Government Announces DA Hike of 5%
The Chhattisgarh government has increased the DA for state government employees by 5%, taking it to 38%. This decision will benefit around 3.80 lakh employees in the state. The Dearness Allowance hike will come into effect from January 1, 2023.
Chief Minister Bhupesh Baghel announced the Dearness Allowance hike in a cabinet meeting on July 6, 2023. He said that the decision was taken given the rising inflation and the need to provide relief to government employees.
“We have decided to increase the dearness allowance for state government employees by 5%. This will benefit around 3.80 lakh employees in the state. The DA hike will come into effect from January 1, 2023”.
Chief Minister Baghel
The Dearness Allowance hike will be applicable to all government employees, including those who are retired or on leave. It will also be applicable to pensioners.
The Dearness Allowance hike is estimated to cost the state exchequer an additional Rs. 1,000 crore per year.
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Rajasthan Government Announces DA Hike of 16%
The Rajasthan government has also announced a DA hike for its state government employees. The DA for Rajasthan government employees and pensioners under the 5th Pay Commission has been increased from 396% to 412%. This decision will benefit around 21.10 lakh employees and pensioners in the state. The DA hike will come into effect from January 1, 2023.
Chief Minister Ashok Gehlot announced the Dearness Allowance hike in a statement released on July 6, 2023. He said that the decision was taken given the rising inflation and the need to provide relief to government employees.
“We have decided to increase the DA for state government employees and pensioners by 16%. This will benefit around 21.10 lakh employees and pensioners in the state. The DA hike will come into effect from January 1, 2023”.
Chief Minister Gehlot
The Dearness Allowance hike is estimated to cost the state exchequer an additional Rs. 2,000 crore per year.
How Much Will the DA Hike Benefit Government Employees?
The amount of DA that a government employee receives depends on their basic salary. For example, a government employee with a basic salary of Rs. 50,000 will receive an additional Rs. 2,500 per month as DA, after the 5% hike in Chhattisgarh. In Rajasthan, the same employee will receive an additional Rs. 7,600 per month as DA, after the 16% hike.
What is the Impact of the DA Hike on the Exchequer?
The Dearness Allowance hike will have an impact on the exchequer of both states. The Chhattisgarh government has estimated that the DA hike will cost the state exchequer an additional Rs. 1,000 crore per year. The Rajasthan government has estimated that the DA hike will cost the state exchequer an additional Rs. 2,000 crore per year.
What is the Future of DA Hikes?
The DA hike is linked to the Consumer Price Index (CPI). As long as the CPI continues to rise, the government may be forced to announce further Dearness Allowance hikes in the future.
Additional Resources:
- Government hikes DA for central government employees by 4%: https://economictimes.indiatimes.com/wealth/earn/7th-pay-commission-da-hiked-by-4-for-central-govt-employees-pensioners/articleshow/98977045.cms
- Good news for govt staff! DA hike announced in these two states: https://www.zeebiz.com/personal-finance/news-good-news-for-govt-staff-dearness-allowance-hike-announced-in-these-two-states-da-rate-calculation-7th-pay-commission-243066
- DA hiked by 16% for these central government employees: https://www.zeebiz.com/personal-finance/news-dearness-allowance-hike-news-16-increase-da-rate-dr-hike-news-today-dearness-relief-calculation-july-2023-central-government-employees-pensioners-7th-pay-commission-latest-salary-update-structure-arrears-calculator-matrix-240132
Conclusion
The DA hike is a positive development for government employees in Chhattisgarh and Rajasthan. The increase in DA will help them to cope with the rising cost of living. However, the Dearness Allowance hike is a significant financial burden on the state governments. The future of DA hikes will depend on the trend of the CPI.
FAQs
What is DA?
Dearness allowance (DA) is a type of allowance paid to government employees to help them cope with the rising cost of living. It is calculated as a percentage of the employee’s basic salary.
What is the Dearness Allowance hike for government employees in Chhattisgarh and Rajasthan?
The DA hike for government employees in Chhattisgarh is 5%. This means that the DA for government employees in Chhattisgarh will increase from 33% to 38%. The DA hike for government employees in Rajasthan is 16%. This means that the DA for government employees in Rajasthan will increase from 396% to 412%.
When will the DA hike for government employees in Chhattisgarh and Rajasthan come into effect?
The DA hike for government employees in Chhattisgarh and Rajasthan will come into effect from January 1, 2023.
Who is eligible for the DA hike in Chhattisgarh and Rajasthan?
The DA hike in Chhattisgarh and Rajasthan is applicable to all government employees, including those who are retired or on leave. It is also applicable to pensioners.
How much will the DA hike benefit government employees in Chhattisgarh and Rajasthan?
The amount of DA that a government employee receives depends on their basic salary. For example, a government employee with a basic salary of Rs. 50,000 will receive an additional Rs. 2,500 per month as DA, after the 5% hike in Chhattisgarh. In Rajasthan, the same employee will receive an additional Rs. 7,600 per month as DA, after the 16% hike.
What is the impact of the DA hike on the exchequer of Chhattisgarh and Rajasthan?
The DA hike will have an impact on the exchequer of both states. The Chhattisgarh government has estimated that the DA hike will cost the state exchequer an additional Rs. 1,000 crore per year. The Rajasthan government has estimated that the DA hike will cost the state exchequer an additional Rs. 2,000 crore per year.
What is the future of DA hikes for government employees in Chhattisgarh and Rajasthan?
The DA hike is linked to the Consumer Price Index (CPI). As long as the CPI continues to rise, the government may be forced to announce further Dearness Allowance hikes in the future.