Srinagar: Employees and pensioners in J&K have a reason to smile. The government has increased the Dearness Allowance (DA) from 17% to 28%.
In an official order on Monday, the Finance Department approved the change with effect from July 1, 2021 for all government employees working in regular pay levels under 7th Pay Commission.
The DA will now be calculated on the basis of 28% of the basic pay of an employee as against 17% until June 2021.
A similar relief has come for pensioners as well as the department approved the change in another order.
From 17% of basic pension, the pensioners will now get 28% of the basic pension as DA.
The term ‘Basic Pay’ in the revised pay structure means the pay drawn in the prescribed level in the pay matrix as per the 7th Pay Commission recommendations, but does not include any other type of pay.
“The increase subsumes the additional installments arising on the 01.01.2020, 01.07.2020, and 01.01.2021. The rate of Dearness Allowance for the period from 01.01.2020 till 30.06.2021 shall remain at 17%,” read the order meant for government employees.
Last month, the Finance Ministry had issued an order to implement the Cabinet decision to hike Dearness Allowance for central government employees to 28 per cent from July 1.
The Union Cabinet had approved an 11 per cent hike in Dearness Allowance and Dearness Relief (DR) for central government employees and pensioners with effect from July 1, benefitting more than 48 lakh central government employees, and 65 lakh pensioners.