DA hike on Diwali: Uttar Pradesh, Arunachal Pradesh announce 3% DA hike for state govt employees 

State DA Hike: Following the Diwali bonus announcement for government employees by the Uttar Pradesh government, the Yogi Adityanath administration has declared a rise in Dearness Allowance (DA) for 17 lakh state employees and teachers during this festive period.

This decision aligns with a previous action taken by the Central government in October. The Uttar Pradesh government has augmented the DA for its employees to 3%, resulting in a total of 53%. This adjustment will become effective from July 1 and will be evident in the salaries disbursed on October 30, 2024.

The employees will be receiving a bonus of Rs 6,908, along with their salaries credited before Diwali. However, only 25% of the bonus amounting to Rs 1,727 will be given in cash, while the remaining 75% will be deposited into their General Provident Fund (GPF) accounts.

The increased salary and bonus payments for this month will result in an additional financial cost of Rs 1,022 crore for the state government.

On Wednesday, UP CM Yogi Adityanath announced a Diwali bonus for around 15 lakh non-gazetted state employees. Following this announcement, the Finance Department released a government order detailing the bonus. The bonus, equal to one month's emoluments and capped at Rs 7,000, will be given to eligible employees prior to Diwali.

The order issued by additional chief secretary Deepak Kumar specified that the bonus would be extended to full-time, non-gazetted officers, primarily comprising Group C and D employees in government-aided schools and colleges, technical education institutions, local bodies, zila panchayats, among others.

Furthermore, only employees who have completed one year of continuous service by March 31, 2024, will be eligible for the bonus. These employees will receive a maximum bonus of Rs 7,000, which will be disbursed along with their October salary.

Arunachal Pradesh DA Hike

The Arunachal Pradesh government has approved a 3% increase in Dearness Allowance (DA) and Dearness Relief (DR) for regular employees and pensioners, effective from July 1, 2024. This raise will raise the current DA and DR rate from 50% to 53%, giving improved financial assistance to more than 68,818 state employees.

The announcement was made by Deputy Chief Minister Chowna Mein on October 23. The hike aligns with the policy of the central government and will benefit state government employees, All India Service officers stationed in Arunachal, central government employees on deputation, and pensioners. Additionally, the House Rent Allowance (HRA) rates have been adjusted to 30%, 20%, and 10% based on the town category. The decision is projected to have a financial impact of Rs 63.92 crore from July 2024 to March 2025.

DA hike

Dearness Allowance (DA) is a government-provided adjustment aimed at helping employees and pensioners cope with the impact of inflation on their purchasing power. Calculated as a percentage of the basic salary and based on the Consumer Price Index (CPI), the DA ensures that wages are adjusted to reflect changes in the cost of living. This helps to shield employees from economic fluctuations and maintain their standard of living.

Recent announcements from various states have highlighted increases in dearness allowance (DA) for government employees. On October 17, Chhattisgarh CM Vishnu Deo Sai raised the DA for state government employees by 4%, bringing the total DA to 50%. Similarly, the Odisha government approved a 4% increase in DA for employees of State Public Sector Undertakings (PSUs), raising the DA from 46% to 50%, effective from January 1, 2024.

In Himachal Pradesh, Chief Minister Sukhvinder Singh Sukhu has approved a 4% rise in dearness allowance for state government employees and pensioners, starting on January 1, 2023. Furthermore, he has announced the prompt settlement of outstanding medical expenses for government workers and pension arrears for individuals aged 75 and above. Class-IV employees will also receive a Rs 20,000 installment of their arrears as part of the increased DA.

Similarly, the government of Sikkim has announced a 4% increase in DA for its employees, just ahead of the Durga Puja festival. Effective from January 1, 2024, the dearness allowance has been increased from 46% to 50% for state government staff. This adjustment will also be applicable to the dearness relief provided to pensioners.

The Jharkhand state government has recently approved a 9% increase in dearness allowance for government employees. Prior to this decision, employees were receiving a dearness allowance of 230% as per the Sixth Central Pay Commission. Following the approval, the dearness allowance has been revised to 239%.