SRINAGAR: The state government today announced 11% hike in the dearness allowance (DA) of its employees, in two retrospective steps, from July 2016 and January 2017.
The cabinet meeting chaired by Chief Minister Mehbooba Mufti Wednesday accorded approval to the release of DA installment @ 7% of basic pay from July 2016 and further 4% from January 2017 raising the total DA of the employees from 125% to 132% from 1.7.2016 and 136% from 1.1.2017.
The arrears on account of additional installments from July 2016 up to May 2017 shall be credited to the individual GPF accounts of government employees in the month of June 2017 and shall form part of the monthly salary from there onwards.
For the employees governed by the New Pension Scheme, the arrears on account of additional installments up to May 2017, shall be paid in cash in month of June 2017 and the employees’ share @ 10% shall be deducted at source and credited to their PRAN numbers along with the matching share by the employer. Thereafter, the enhancement in the DA shall form part of the monthly salary.
Enhancement in DA will also apply to the work charged/whole time contingent paid employees, working in a regular time scale.
The cabinet also approved the release of the DA installment @ 7% w.e.f. 1.7.2016 and 4% w.e.f. 1.1.2017 raising the total dearness allowance of the pensioners/family pensioners from 125% to 132% w.e.f. 1.7.2016 and from 132% to 136% from 1.1.2017.
The arrears on account of the enhanced rate of Dearness Allowance from July 2016 and January 2017 up to May 2017 shall be paid to them in cash in the month of June 2017 and shall form part of the monthly pension/family pension there onwards.
A government spokesman said that it is for the first time that the DA is being released without the employees having to resort to any agitation.
He said that bringing down the qualifying service for full pensionery benefits from 33 to 20 years and increase of TMA from Rs 10000 to Rs 15000 are some other laudable measures taken by the present government.