7th salary commission: Good news! UP Govt Hikes DA for 28 Lakh State employees, retirees

7th salary commission: CM Adityanath has directed the finance department to immediately draw up a plan to increase the dearness allowance of around 16 lakh state government employees and 12 lakh pensioners. 

7th salary commission: Ahead of the mega-assembly elections, Uttar Pradesh Chief Minister Yogi Adityanath surprised state officials by announcing an increase in their cost allowance (DA).

In line with the Center’s decision earlier this month, CM Adityanath called on the finance department to immediately develop a plan to increase the hardship allowance of around 16 lakh state government employees and 12 lakh retirees.

As a result of the increase in DA, there will be an 11 percent increase in the cost allowance for state employees, which will put an annual charge of $ 64 billion on the treasury.

The cost allowance was suspended for a year and a half due to the economic downturn during the corona pandemic. State officials will receive the cost allowance for January 2020, July 2020, and January 2021.

The decision came amid the increase in the DA by the Union government for central government employees from 17 percent to 28 percent.

The current increase would be calculated on the base salary of the employees. For example, an employee receives Rs 100 as a base salary. The amount of DA at the rate of 17% amounts to approximately Rs 17. Now the total DA is increased by 28% of Rs 100, which amounts to Rs 28.

The cost allowance is a part of the salary intended to fight inflation and revised twice a year – once in January and once in July.

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