Decision Follows Central Government’s Announcement
It is noteworthy that the central government had already increased the DA for its employees by 2%. A few weeks later, the Yogi government has followed suit, benefiting approximately 1.6 million state government employees, teachers, and pensioners. This DA increase will provide relief in monthly salaries, particularly for families facing financial strain due to rising inflation.
Understanding Dearness Allowance (DA)
Dearness Allowance is an amount paid to employees in addition to their basic salary to offset the impact of inflation, ensuring their purchasing power remains relatively stable. Central and state governments typically review DA every six months, adjusting it based on changes in inflation rates.
Wave of Happiness Among Employees
The DA increase has been met with widespread joy among state employees. Various employee organisations have welcomed the government’s decision, citing not only the financial relief but also the demonstration of the government’s commitment to employee welfare. The president of the State Employees Joint Council stated, “We had been demanding a DA increase for a long time. The government has positively responded to our demand.”
Financial Impact and Government Preparedness
While this decision will impose an additional financial burden of thousands of crores of rupees annually on the state government, the government has already planned to accommodate this within its budget management. Sources indicate that the finance department assessed the financial impact of this increase last month and submitted a report to Chief Minister Yogi Adityanath.