After the 7th pay commission announced by the central government to increase the dearness allowance, many state governments have followed it.
The Odisha government on Friday announced an 11 per cent hike in Dearness Allowance (DA) for its employees. The state government has told that this increase in dearness allowance will be effective from July 2021, the state government employees will start getting the increased salary from October this month. With the increase of 11 per cent dearness allowance in Odisha, the DA of state government employees has increased to 28 per cent. Significantly, in July this year, the Narendra Modi government had approved to increase the inflation of central government employees from 17 per cent to 28 per cent.
Central government gave three pending dearness allowances Significantly, the 11 per cent hike announced by the central government comes after adding three pending DAs, including the 4 per cent DA announced for January to June 2020. The allowance is included for the period July to December 2020 and January to June 2021.
These state governments have also increased dearness allowance
After the announcement of increasing dearness allowance by the central government, many state governments have followed it. After the announcement of the Center, states like Jharkhand, Rajasthan and Jammu and Kashmir have also increased the DA of their government employees and pensioners from 17 percent to 28 percent. Apart from this, the Gujarat government has also increased the DA.
Central government may soon increase house rent allowance
The Cabinet Committee, chaired by Prime Minister Modi, approved the increase of dearness allowance to employees and dearness relief to pensioners to 28 percent with effect from July 1, 2021. Prior to this decision of the government, the employees used to get dearness allowance and dearness relief at the rate of 17 percent. Now there is information that the Central Government can also increase the House Rent Allowance (HRA). The Center had increased the House Rent Allowance (HRA) to 27 per cent in July. In an order issued by the Department of Expenditure on July 7, 2017, it was said that HRA will be revised if dearness allowance exceeds 25 percent.
