Tamil Nadu, Uttar Pradesh announce 4% DA and DR hike

The hike comes into effect from 1 April 2023, retrospectively in Tamil Nadu and on 1 January, 2023 in Uttar Pradesh

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Tamil Nadu Chief Minister MK Stalin has announced that the state government has decided on a four per cent hike in dearness allowance (DA) for employees and in dearness relief (DR) for pensioners as per the 7th Pay Commission. This increment will come into effect retrospectively from 1 April 2023, and the employees will be paid the arrears accordingly.

Earlier, the employees as well as the pensioners of the Tamil Nadu government were receiving a dearness allowance of 38 per cent. With this increment, they will now avail DA and DR of 42 per cent.

With the beneficiaries (about 16 lakh people) now entitled to higher salaries and pensions every month, there is going to be significant pressure on the state government’s treasury, with the expenditure on the same mounting to Rs 2,367 crore per year.

Meanwhile, up north, in Uttar Pradesh too, the Chief Minister Yogi Adityanath, has increased the DA from 38 percent to 42 per cent under the 7th Pay Commission. The beneficiaries, including about 16.35 lakh employees and 11 lakh pensioners, will receive the hiked DA with effect from 1 January, 2023.

Last month a hike in DA was announced by the Bihar too, while the Himachal Pradesh government announced a three per cent hike in DA.

The dearness allowance is meant to help beneficiaries tackle inflation,

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