Government Grants Much-Awaited Increase in Dearness Allowance to Benefit Over 3 Lakh Employees and Pensioners

  • 2 min read
  • May 01, 2023
Government Grants Much-Awaited Increase in Dearness Allowance to Benefit Over 3 Lakh Employees and Pensioners

The Himachal Pradesh government has announced an increase in Dearness Allowance (DA) for its employees and ex-employees. The decision was made after the restoration of the old pension scheme in the state. The announcement was made by Chief Minister Sukhwinder Singh Sukhu during the state-level function on Himachal Day on April 15, and a notification in this regard has also been issued by the state government. The increase in DA will benefit more than 3 lakh people, including 2.15 lakh employees and 90,000 retired employees.

Prior to this announcement, employees and retired individuals of the Himachal Pradesh government used to receive dearness allowance at the rate of 31 percent. With the new announcement, eligible employees and pensioners will now receive benefits at the increased rate of 34 percent. They will also receive compensation in the form of arrears. The state government has estimated that this decision will increase the burden on the state exchequer by Rs 500 crore.

The Chief Secretary of the state has also issued a notice stating that the allowance earned after April 2023 will be paid in cash. However, the arrears from January 2022 to March 31, 2023, will be paid in the General Provident Fund account. After January 1, 2022, retired employees will receive their dearness allowance in cash.

The increase in DA is a much-awaited announcement for government employees, as it directly impacts their salaries. The decision will bring some relief to the employees, especially during these challenging times when the cost of living has increased due to inflation.

The Himachal Pradesh government’s decision to increase DA is commendable, as it will help improve the financial situation of its employees and pensioners. The government’s move will not only benefit its employees but also encourage other state governments to take similar actions. With the increasing cost of living, such steps are necessary to ensure that employees are not burdened by rising expenses and can lead a comfortable life.

The announcement of the increase in DA by the Himachal Pradesh government is expected to boost the morale of the employees and create a positive impact on their lives. The state government has shown that it values its employees and is committed to their welfare. This decision will go a long way in strengthening the relationship between the government and its employees.

Conclusion: The increase in DA by the Himachal Pradesh government is a welcome move. It will benefit more than 3 lakh people and help them cope with the rising cost of living. The government’s decision to implement the increase in DA will not only boost the morale of its employees but also set an example for other states to follow. It is hoped that other state governments will also take similar actions to benefit their employees and pensioners.