DA Hike News 2021: Good news for government employees of this state - Dearness Allowance increased to 31%

In a good news for the state government employees, Tamil Nadu Chief Minister M K Stalin ordered a 14 per cent increase in Dearness Allowance for government employees, teachers, pensioners and family pensioners with effect from January 1, 2022. The decision was taken on Tuesday. 

'Pongal' cash gift

Also, Stalin ordered harvest festival, 'Pongal' gift of Rs 3,000 for C and D category employees, Rs 1,000 for those drawing salary in the special pay matrix and Rs 500 for pensioners, which includes those receiving special pension, as per a PTI report.

Pongal festival falls on January 14, 2022.

The hike in DA from 17 to 31 per cent would entail an additional expenditure of about Rs 8,724 crore and for festival cash gift approximately, Rs 169.56 crore, an official release said.

Fiscal burden

Despite the fiscal burden, the Chief Minister directed the DA raise and festival gift considering the welfare of all government employees, teachers and pensioners, the government said.

Dearness Allowance

On September 7, 2021, Stalin had announced in the Assembly that enhanced Dearness Allowance to government employees and pensioners would be advanced by three months and it shall be implemented with effect from January 1, 2022.

However, the government had not specified then, the percentage of increase that was being contemplated. Employees had demanded and expected a raise of 11 per cent. 

The present DA hike would benefit about 16 lakh government employees and pensioners.

Previously, in the revised budget (2021-22), the increase in DA for employees and pensioners was announced with effect from April 1, 2022, which was advanced subsequently by three months, the PTI report added.

(With PTI inputs)