The Punjab government is set to enhance the dearness allowance of the state employees by 4% before Diwali, in line with the Central government and other state governments as well.
The topic is expected to be discussed at the council of ministers meeting on Friday, according to a report by The Tribune.
The Finance Department allegedly sent the document requesting clearance for 6% DA to the Chief Minister for his approval, according to a report by The Tribune. And following his consent, the Cabinet would review the situation before granting the DA to the state government employees. Notably, the six percent DA increase from the previous year is being examined for release.
The Centre enhanced the dearness allowance (DA) and dearness relief (DR) by 4% with effect from July 1, 2022, benefiting 69.76 lakh pensioners and 41.85 lakh central government employees.
The additional DA and dearness relief (DR) payment is a 4% increase above the current rate of 34% of basic pay/pension. Anurag Thakur, the minister of information and broadcasting, told reporters that the impact of both DA and DR would be combined and amount to Rs 12,852.5 crore per year on the exchequer.
According to him, starting on July 1, 2022, both Central Government employees and pensioners will be eligible for greater DA and DR amounts.