Good News for 9.44 Lakh Gujarat State Pensioners and Employees: 4% DA Hike Announced Jan to July 2024
Gujarat Government Makes Quick Decisions
After deciding to recruit 24,700 teachers on July 3, 2024, the Gujarat government has now made an important decision for state employees. Chief Minister Bhupendra Patel announced that state government employees will receive a 4% increase in Dearness Allowance (DA) from January 1, 2024, in line with the central government standards, under the benefits of the Seventh Pay Commission. This increase in DA will benefit 471,000 state government and panchayat service employees, as well as approximately 473,000 retired employees, totaling 944,000 beneficiaries.
January-February Difference Will Be Reflected in July Salary
The DA difference for six months, from January 1, 2024, to June 30, 2024, will be paid in three installments along with the salaries. Accordingly, the difference for January and February 2024 will be paid with the July 2024 salary, the difference for March and April 2024 will be paid with the August 2024 salary, and the arrears for May and June 2024 will be paid with the September 2024 salary.
Government to Pay INR 1,129.51 Crores
The state government will pay a total of INR 1,129.51 crores to employees as arrears. The Finance Department has been instructed to issue necessary orders to implement this employee-friendly decision by Chief Minister Bhupendra Patel.
What is Dearness Allowance?
Dearness Allowance (DA) is a monetary benefit given to government employees to help them maintain their standard of living despite rising inflation. This allowance is provided to government employees, public sector employees, and pensioners. It is calculated every six months based on the current inflation rate in the country. The DA amount is determined according to the related pay scale and is calculated based on the employee’s basic salary. DA may vary for employees in urban, semi-urban, or rural areas.
How is Dearness Allowance Calculated?
A specific formula is used to determine DA. For central government employees, the formula is: DA Percentage=(Average of All India Consumer Price Index (AICPI) for the last 12 months−115.76115.76)×100\text{DA Percentage} = \left( \frac{\text{Average of All India Consumer Price Index (AICPI) for the last 12 months} – 115.76}{115.76} \right) \times 100DA Percentage=(115.76Average of All India Consumer Price Index (AICPI) for the last 12 months−115.76)×100
For Public Sector Unit (PSU) employees, the calculation method is: DA Percentage=(Average of Consumer Price Index for the last 3 months (Base Year 2001 = 100)−126.33126.33)×100\text{DA Percentage} = \left( \frac{\text{Average of Consumer Price Index for the last 3 months (Base Year 2001 = 100)} – 126.33}{126.33} \right) \times 100DA Percentage=(126.33Average of Consumer Price Index for the last 3 months (Base Year 2001 = 100)−126.33)×100
