The State Government have announced release of additional dearness allowance (DA) @ 7% State Government employees and employees borne in grant-in-aid establishment to compensate for the price rise. The increase, to be made effective from 01/07/2014, would raise the existing rates of DA from 100% of Basic Pay to 107%.
This additional dose of DA will be paid in cash and can be drawn in the Pay Bill of October, 2014 payable in November, 2014 and onwards. Arrear from the month of July, 2014 to September, 2014 on account of the enhanced DA, shall not be drawn before the date of disbursement of salary of October 2014.
The impact on the State Exchequer on account of the enhanced DA would be of the order of Rs.345.52 crore in the current financial year (i.e. for the period from July, 2014 to February, 2015). This will benefit about 4 lakh employees of the State Government.