In a move that will cause financial burden of Rs 930 crore on state exchequer, the Gujarat Government on Wednesday declared to give a total 4 per cent dearness allowance— two installments— to the employees of the state government, panchayats and pensioners from July 1, 2016.
More than 8.20 lakh employees of the government, panchayats and pensioners will benefit from the decision.
Deputy Chief Minister Nitin Patel announced the decision after it got an approval from the state cabinet in its meeting on Wednesday.
Patel said that as per the recommendations of the Central Government, after implementing the Seventh Pay Commission, the government has decided to give 2 per cent dearness allowance from July 1, 2016 to December 31, 2016. At the same time, it has also been decided to give 4 per cent dearness allowance from January 1, 2017 to the aforementioned employees and pensioners.
“The arrears for the said period will be given to the employees and pensioners in their salary of the current month. And this will cause a total financial burden of Rs 930 crore, including the arrears, on the state government in the current year. For the rest of the years, the increase in dearness allowance will cause annual financial burden of Rs 465 crore,” Patel said.
In Gujarat, there are a total 1,85,575 state government employees and 2,08,771 panchayat employees and 4,26,418 pensioners.