Based on the guidelines of the central government, the Gujarat government has made the decision to raise the dearness allowance (DA) by 4 per cent. The recent increase will cover both the state government employees and pensioners, including panchayat service employees, and other state government pensioners.
The raise will be implemented twice. The first increase will be implemented from 01-07-2022, followed by another 4 per cent increase from 01-01-2023.
The newly announced increment in dearness allowance will be provided to employees who have already availed the benefits of the 7th Pay Commission. Hence, according to a government announcement, over 9,38,000 state government employees and retired individuals who fall under the 7th Pay Commission will gain from the salary increase.
Furthermore, to ensure prompt payment, Chief Minister Bhupendra Patel has made the decision to distribute the arrears resulting from the eight percent hike in dearness allowance in three instalments. The first instalment will be disbursed along with the salary for June 2023, followed by the second instalment with the salary for August 2023, and the third instalment with the salary for October 2023.
According to the announcement, the increase has been granted based on the standards set by the central government. Moreover, the release also mentioned that the rise in dearness allowance will result in an additional financial burden of Rs 4,516 crore on the state treasury annually.
