7th Pay Commission: This State Announces Big New Year Gift For Govt Employees, Hikes Their Dearness Allowance to 31%, Grants Rs 3000 Cash Offer

7th Pay Commission: This State Announces Big New Year Gift For Govt Employees, Hikes Their Dearness Allowance to 31%, Grants Rs 3000 Cash Offer

7th Pay Commission Latest News Today: Ahead of New Year, here comes a piece of good news for the state government employees of Tamil Nadu. Chief Minister M K Stalin on Tuesday issued an order to hike 14 per cent in Dearness Allowance for government employees, teachers, pensioners and family pensioners with effect from January 1, 2022. In the fresh order, the state government said the hike in DA from 17 to 31 per cent would entail an additional expenditure of about Rs 8,724 crore and for festival cash gift approximately, Rs 169.56 crore.

Apart from this, the state government announced harvest festival ‘Pongal’ gift of Rs 3,000 for C and D category employees, Rs 1,000 for those drawing salary in the special pay matrix and Rs 500 for pensioners, which includes those receiving special pension. It must be noted that the Pongal festival falls on January 14, 2022.

The state government in a statement said that despite the fiscal burden, Chief Minister Stalin ordered the DA raise and festival gift considering the welfare of all government employees, teachers and pensioners.

The development comes after CM Stalin had in September this year announced in the Assembly that enhanced Dearness Allowance to government employees and pensioners would be given in advance by three months and it shall be implemented with effect from January 1, 2022.

However, the Tamil Nadu government had not specified then, the percentage of increase that was being contemplated. Employees had demanded and expected a raise of 11 per cent. The present DA hike would benefit about 16 lakh government employees and pensioners.

Earlier in the revised budget (2021-22), the increase in DA for employees and pensioners was announced with effect from April 1, 2022, which was advanced subsequently by three months.

The move from the state government comes after the Union Cabinet in October this year hiked dearness allowance and dearness relief by 3 per cent to 31 per cent to benefit 47.14 lakh central government employees and 68.62 lakh pensioners. This decision to hike the allowance had put an annual burden of Rs 9,488 crore on the exchequer.

Earlier in July, the government had restored the dearness allowance (DA) and dearness relief (DR) and increased the rate of allowance from 17 per cent to 28 per cent.

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