DA Hike: The Rajasthan government on Saturday announced a 4 per cent increase in the dearness allowance of the state employees and pensioners. This comes days after the central government announced a hike in central government employees and pensioners DA.

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The pensioners and state government employees will now receive a 42 per cent dearness allowance (DA) with effect from January 1, 2023. Earlier, 38 per cent DA was being given to them.

The decision will benefit about 8 lakh state employees and 4.40 lakh pensioners, according to an official release.

Apart from the state employees, this benefit will also be payable to the work-charged, Panchayat Samiti and Zila Parishad employees.

The state government will bear a financial burden of about Rs 1,640 crore annually with this increase.

Chief Minister Ashok Gehlot said the central government announced a DA, but it is implemented after a long time, while the Rajasthan government ensures immediate payment of the increased amount along with the announcement.

Centre announces DA hike by 4%

Earlier on Friday, the Union Cabinet had also announced to increase in the dearness allowance and dearness relief by 4 per cent to 42 per cent to benefit 47.58 lakh central government employees and 69.76 lakh pensioners.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be Rs 12,815.60 crore per annum, I&B Minister Anurag Thakur told reporters after the meeting of Cabinet Committee on Economic Affairs (CCEA).

The release of the additional instalment of dearness allowance to employees and dearness relief to pensioners will be effective from January 01, 2023.

This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

With PTI Inputs