The Rajasthan government has announced a significant four per cent increase in dearness allowance (DA) for state-government employees and pensioners. The decision, finalised during a state cabinet meeting in Jaipur on 14 March, will directly benefit approximately eight lakh employees and 4.40 lakh pensioners.
Previously set at 46 per cent, the DA has now been elevated to 50 per cent, effective from 1 January, 2024. The chief minister highlighted the financial implications, noting that the four per cent hike will impose an additional burden of around Rs 1,640 crore annually on the state exchequer.
Along with the DA hike, the state government announced a concurrent reduction of two per cent in Value Added Tax (VAT) on petrol and diesel.
In a recent ruling, the Rajasthan High Court highlighted the importance of treating employees fairly and cautioned employers against unjustly taking away their livelihoods and causing trauma.
Recently, Assam announced a four per cent hike in dearness allowance or DA for government employees in time for New Year celebrations of the state, that is, Bohag Bihu. The revised DA will come into effect from 1 January, 2024 and will be disbursed in three batches, that is, one instalment every month, starting May 2024.