Chief Minister Jayalalithaa on Friday announced a seven per cent hike in dearness allowance to benefit about 18 lakh employees of the State government, teachers, pensioners and family pensioners.

The move would involve an additional expenditure of Rs. 1,443.52 crore to the government annually. The increase in DA rate would be paid in cash with effect from July 1, according to a statement issued by the Chief Minister.

The announcement followed the Union government’s decision to increase DA for its employees.

The revised DA rate would be 72 per cent of pay plus grade pay. It would apply to full time employees who were, at present, getting DA and paid from contingencies at fixed monthly rates. It would also apply to the teaching and non-teaching staff working in government-aided educational institutions, employees of local bodies, those governed under the scales of pay of the University Grants Commission/All India Council for Technical Education, teachers/physical directors /librarians in government and government-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 panchayats under Rural Development and Panchayat Raj (RD&PR) Department and sanitary workers drawing special time scale of pay.

A similar seven per cent increase in DA had been ordered for pensioners and family pensioners. The government also issued an order to give an ad hoc increase of Rs. 20 per month or Rs. 40 per month to those drawing consolidated pay/fixed pay/honorarium effective July 1. The rate of Rs. 20 would be applicable to those whose pay was up to Rs. 600 per month and the rate of Rs. 40 to those who were getting over Rs. 600 per month. In both cases, the employees should be getting the respective amounts from January 1, 2006. This would apply to employees of local bodies, overhead tank operators and sweepers working in RD & PR Department. (EOM)

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