Yogesh K Porwar & Avanth Kumar Kankariya
The state government of Karnataka has decided to increase the Dearness Allowance (DA) for state employees from 24.50 percent to 27.25 percent of basic pay.This is an increase of 2.75 percent.
According to a government of Karnataka order on April 5, 2022,Government are pleased to enhance the rates of Dearness Allowance payable to the State Government Employees in the 2018 Revised Pay Scales from the existing 24.50% to 27.25% of Basic Pay with effect from January 2022.
This move has come after the central government announced an increase in dearness allowance (DA) for its employees.
According to the central government notification issued on March 30, 2022,the DA has been increased by 3 percent to 34 percent from 31 percent previously.
The increase will go into effect from January 1, 2022.
Government employees receive a dearness allowance to compensate for rising inflation.The decision announced today would increase the amount of money available to government employees and retirees.
The DA hike will also benefit retired employees who receive pension on UGC/AICTE/ICAR scales of pay.
According to the Karnataka government order, these instructions will apply to full-time government employees,Zilla Panchayat employees,and work-charged employees on regular pay rates.
Full-time employees at aided educational institutions and universities on standard pay schedules.
According to the order, these are the point to note:
This order allows for an increase in Dearness Allowance that is payable in cash.
Payments for Dearness Allowance including fractions of 50 paise or more must be rounded up to the next rupee,with fractions less than 50 paise being omitted.
Payment of Dearness Allowance arrears shall not be paid before the date of salary disbursement in the month of March 2022.
What is Dearness Allowance?
The Dearness Allowance will be displayed as a separate component of payment and will not be considered pay for any purpose.
Dearness Allowance/Dearness Relief is a payment made to central/state government employees/pensioners to help them adjust to rising costs of living and safeguard their basic pay/pension from depreciation.
On January 1 and July 1 of each year, the Dear Allowance/Dearness Relief is amended.
Chief Minister Basavaraj Bommai has approved a 2.75% increase in Dearness Allowance for the State government employees with effect from January 1.
The decision would result in an additional annual expenditure of Rs1447 cr and the State government has issued the orders in this regard.