Celebrating the ten-year anniversary of Telangana on Monday, the state government announced a hike in the dearness allowance (DA) provided to its employees. Additionally, the government has also announced a raise in dearness relief (DR) offered to pensioners in the state.
As per the official notice issued by the state government, DA has been increased from 20.02 per cent of the basic pay to 22.75 per cent., On the other hand, the DR for former government employees has been revised from 55.536 per cent to 59.196 per cent of the basic pay, effective from January 1, 2022.
Moreover, the revised DA and DR will be disbursed starting from June 2023 and will be paid in July 2023, benefiting a total of 7.28 lakh government employees and pensioners. Furthermore, the government will issue separate orders regarding the payment of arrears from January 1, 2022, to May 31, 2023.
Harish Rao, finance minister, Telangana, tweeted that this decision will result in an additional monthly expenditure of Rs 81.18 crore and an annual expenditure of Rs 974.16 crore for the government, in addition to the payment of Rs 1380.09 crores towards pending arrears.
Dearness allowance (DA) is a cost of living adjustment provided by the government to public sector employees and pensioners. It is calculated as a percentage of the basic salary to mitigate the impact of inflation. DR is the additional amount of money provided to individuals on top of their basic pay or pension to account for increasing prices and other expenses.