Rajasthan Government Announces 2% DA Increase for State Employees
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Synopsis
In a significant move, the Rajasthan government has approved a 2% increase in dearness allowance for state employees and pensioners. Effective January 2025, this decision benefits around 8 lakh employees and 4.4 lakh pensioners, marking a financial commitment of Rs 820 crore annually.
Key Takeaways
- 2% increase in dearness allowance for state employees.
- The new DA rate will be 55% effective January 2025.
- Approximately 8 lakh employees and 4.4 lakh pensioners to benefit.
- Financial burden of Rs 820 crore on the state.
- Cash payment to start in April 2025.
Jaipur, April 1 (NationPress) Rajasthan Chief Minister Bhajanlal Sharma has declared a 2 per cent hike in dearness allowance (DA) for state government employees.
Pensioners will also see a 2 per cent increase in dearness relief (DR).
The Rajasthan government approved this similar increment for its employees on the first working day, as directed by the Chief Minister.
On Tuesday, the Finance Department's proposal received formal approval, leading to a change in the 7th Pay Commission. State employees and pensioners will now receive 55 per cent DA/DR, up from the previous 53 per cent, effective from January 1, 2025.
This decision will positively impact approximately 8 lakh employees and 4.4 lakh pensioners, including those associated with Panchayat Samitis and Zila Parishads.
The enhanced DA will be provided in cash starting from the April 2025 salary, which will be disbursed in May 2025.
Moreover, the arrears for the period from January to March 2025 will be credited to the General Provident Fund (GPF) accounts of the affected employees.
Meanwhile, pensioners will receive the increased DR in cash starting January 1, 2025. This employee- and pensioner-friendly decision is projected to result in an annual financial burden of Rs 820 crore for the state government, as reported by officials.
Earlier on Friday, the Union Cabinet sanctioned a 2 per cent increase in DA for Central government employees, benefiting nearly 1.15 crore employees and pensioners.
Union Minister Ashwini Vaishnaw stated that the Union Cabinet has approved the release of an additional instalment of Dearness Allowance (DA) to Central government employees and Dearness Relief (DR) to pensioners, effective from January 1, 2025, marking a 2 per cent rise over the current rate of 53 per cent of the basic pay/pension, aimed at compensating for price hikes.
The overall impact on the exchequer due to the increase in both DA and DR would amount to Rs 6,614.04 crore annually. This initiative will benefit around 48.66 lakh Central government employees and 66.55 lakh pensioners.
With this revision, the Dearness Allowance (DA) will rise from 53 per cent to 55 per cent, providing a salary boost for employees ahead of the anticipated 8th Pay Commission.
