7th Pay Commission: This state government increased salary-pension for 16 lakh employees, DA hiked by 4 percent

DA hike latest news: The Dearness Allowance (DA) serves as a buffer against inflation by supplementing the salaries of government employees. In recent days, several state governments have sequentially raised the dearness allowance. The latest development comes from the Government of Tamil Nadu (Tamil Nadu Govt), which has announced an increase in the Dearness Allowance (TN DA Hike) within the state. This adjustment results in an augmented salary for state government employees and a higher pension for retired employees. The effective date of implementation is April 1st.

Tamil Nadu Chief Minister MK Stalin (TN CM MK Stalin) declared the DA increase on Wednesday. He informed that the state government has granted approval for a 4 percent raise in the dearness allowance for employees and pensioners under the 7th pay commission. An official statement from the state government confirmed that this decision will take effect from the beginning of the financial year, ensuring that Tamil Nadu government employees and pensioners receive the increased DA benefits starting from April 1, 2023.

Until now, Tamil Nadu government employees and pensioners were availing a dearness allowance at a rate of 38 percent. However, the rate will now climb to 42 percent. The statement also emphasizes that eligible employees and pensioners will receive the increased rate of dearness allowance from April 1, 2023, along with arrears payments.

However, the state government's statement acknowledges that this increase in dearness allowance will impose a significant burden on the treasury. The direct beneficiaries of this decision are the state government employees and pensioners, who will receive higher salaries and pensions each month. The statement estimates that approximately 16 lakh individuals will directly benefit from the DA increase. Moreover, implementing this decision will result in an annual burden of Rs 2,367 crore on the state government's exchequer.

Other state governments have also raised the dearness allowance. The Uttar Pradesh government, led by Yogi Adityanath, recently increased the allowance from 38 percent to 42 percent under the 7th Pay Commission, effective from January 1, 2023. In April, the Bihar government announced a 4 percent increase in DA. Similarly, the Himachal Pradesh government implemented a 3 percent raise in DA during the same month.

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