Jharkhand government has announced a 3% increase in the dearness allowance (DA) for its employees, effective from July 1, 2024.
This decision, approved during a cabinet meeting chaired by Chief Minister Hemant Soren, aims to provide financial relief to over 300,000 employees and pensioners in the state.
Jharkhand Govt DA Hike: Background and Rationale
Dearness Allowance (DA) is a portion of an employee’s basic salary designed to offset the impact of inflation on living expenses.
The recent hike brings the DA to 53% of the basic pay, up from the previous 50%.
This adjustment is part of a broader trend across the country, where state and central governments are enhancing financial assistance for government workers in light of escalating inflation.
The increase in DA will benefit over 300,000 employees and pensioners across various departments in Jharkhand.
In addition to the DA hike, the government has also revised several associated allowances, including HRA and Tough Location Allowance.
The revisions also cover Conveyance Allowance and Special Allowance for Children of Women with Disabilities.
These changes are expected to significantly improve the financial well-being of state employees and pensioners.
Economic Implications
Jharkhand government allocates approximately Rs 16,000 crore annually to cover the salary and allowances of its employees.
With the recent DA hike, this expenditure is likely to increase, reflecting the government’s ongoing investment in public sector workers and their welfare.
Chief Minister Hemant Soren emphasized the government’s commitment to the state’s development.
He stated that they are ready to move forward with a visionary mindset for the betterment of Jharkhand.
The next DA revision will probably take place in March 2025.
This continues the established practice of biannual updates to provide financial relief to employees and retirees.
Jharkhand government’s decision to increase DA aligns with the Centre’s recent pattern of biannual DA revisions for employees and pensioners.
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