State hikes DA by 8%; 3 lakh employees to benefit
Bhubaneswar: Bringing cheers to its employees and pension holders, the Odisha government on Wednesday announced eight percent hike in dearness allowance (DA).
While the hike will be applicable with retrospective effect from January this year, pension holders as well as the employees will get the increased allowance in their May salary.
The government employees and pensioners who were availing 72 per cent of their basic salary and grade pay as DA would now get 80 per cent of that as the dearness allowance.
"The hike in DA would cost an additional expediture of Rs 746 crore to state exchequer," said Prasanna Acharya, Finance Minister here.
An estimated three lakh government employees and over two lakh pension holders would get the benefit from the new announcement, the minister added.
Earlier, in October last year, the State government had announced a 7 per cent hike in dearness allowance to 72 per cent from 65 per cent for its employees and pensioners.
Notably, for the Central government employees, the Union Cabinet has recently increased dearness allowance from 72 to 80 per cent. The increase, effective from January 1, 2013, will benefit about 50 lakh employees and 30 lakh pensioners.