BHUBANESWAR: The state government on Friday announced a five per cent hike in dearness allowance (DA), which would benefit around five lakh government employees and pension holders. With the hike, the DA now stands at 17%. The hike will be implemented with retrospective effect from January 1, 2020, said a communication from the chief minister's office.
Around 3.5 lakh employees and 1.5 lakh pension holders will benefit from the decision. Finance department sources said the
DA hike
will have an additional financial burden of around Rs 150 crore for month.
In another decision, the government has also decided to clear 10 per cent arrears pending in view of the implementation of the recommendations of the 7th pay commission. Recommendations of the 7th pay commission was implemented in the state from September 2017 against the scheduled period of January 1, 2016.
Earlier the state government had cleared 40 per cent of employees during three financial years. The additional 10 per cent arrear approval will have an additional financial burden of Rs 500 crore on the state exchequer, said official sources.
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