Gujarat government has announced an 11 per cent hike in dearness allowance for its employees and pensioners with effect from 1st July.
Deputy Chief Minister Nitin Patel who is also holding the portfolio of finance ministry said that the new DA rate will be 28 per cent. He said that this decision has been taken in line with the DA released for the central government staff. The Central government had raised DA for its employees from 17 per cent to 28 per cent in July.
More than 14 lakh employees and pensioners of Gujarat government will get the benefit following this decision. The hike in DA will cost the state exchequer 378 crore rupees every month. The new DA will reflect in the salary of the current month, while arrears of July and August will be paid in two installments by the year end.