The new rate will be applicable from July 1 this year, says Chief Minister

It will be a double bonanza for State government employees this month. Ahead of the Deepavali [falling on November 2] bonus, usually paid a couple of weeks prior to the festival, the government on Thursday announced a hike in dearness allowance by 10 percentage points in line with what the Centre had announced for its staff recently.

The Chief Minister, Jayalalithaa, in a statement, said the new rate would be applicable from July 1 this year. It would also be applicable to teachers, pensioners and family pensioners.

Around 18 lakh government employees and pensioners would benefit from the hike. For the State exchequer, the decision would entail an additional annual expenditure of Rs.2,292.78 crore, the Chief Minister said.

An order issued by the Finance Department said the Centre had raised the DA for its employees from 80 per cent to 90 per cent from July 1. Following this, the State government also sanctioned a similar, revised rate (per month) of DA to its employees – 90 per cent of pay plus Grade pay. The previous increase, which saw the rate increase to 80 per cent of pay plus Grade pay, came into force on January 1 this year. The GO said the increase in DA would be paid in cash from July 1. The arrears for July, August and September would be disbursed in cash immediately.

The revised DA would also apply to the teaching and non-teaching staff working in aided educational institutions, employees under local bodies, employees governed by the UGC/AICTE scales of pay, the teachers, physical directors/librarians in government and aided polytechnics and special diploma institutions, village assistants in Revenue Department, Noon Meal organisers, Child Welfare Organisers, Anganwadi workers, cooks, helpers, panchayat assistants/clerks in Village Panchayat under Rural Development and Panchayat Raj department and sanitary workers drawing special time scale of pay. Another GO issued by the Finance Department said the revised rate of DA for State government pensioners/family pensions would be 90 per cent of pension/family pension. Various associations of employees, including Tamilnadu Government Employees’ Association, Tamilnadu Secretariat Association, Tamil Nadu Teachers Association and Government College Teachers’ Manram welcomed the announcement.

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