Following the footsteps of the central government, the Rajasthan government on Wednesday approved an increase in dearness allowance (DA) of state government employees and pensioners from 17 percent to 28 percent.
As per the state government's decision, the increased rate of DA shall be applicable from July 1, 2021.
The decision to increase the DA will cost the state exchequer Rs 4,000 crores each year.
"We have taken the decision to increase the dearness allowance of employees and pensioners of Rajasthan government from 17 percent to 28 percent. This rate of Dearness Allowance shall be applicable from July 1, 2021. The state government will make a yearly expenditure of Rs 4,000 crores to provide support to employees despite difficult conditions due to Covid-19," Chief Minister Ashok Gehlot said.
The decision comes after the central government also approved a hike in dearness allowance and Dearness Relief benefits given to central government employees and pensioners from 17 percent to 28 percent. The development comes as a major relief for lakhs of central government employees and pensioners who were affected by the Centre's decision to freeze the hikes last year due to the Covid-19 pandemic.
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