DA hiked by 6%, to benefit 7 lakh Odisha government employees, pensioners

Bhubaneswar: The Odisha government Saturday (30-4-2016) hiked Dearness Allowance (DA) by 6 per cent, benefiting over 7 lakh state government employees and pensioners, which would cost the exchequer an additional Rs 676.90 crore annually.


The DA, which will benefit over four lakh Odisha government employees and three lakh pensioners, will go up from the existing 119 per cent to 125 per cent, which would come into force with retrospective effect from January 1, 2016


Dearness allowance is paid as a portion of basic pay of employees to neutralise the impact of inflation. Pensioners get dearness relief.


The state government revises DA twice in a year on the basis of one year average of retail inflation for industrial workers as per a pre-determined formula.


The DA was increased following approval by Chief Minister Naveen Patnaik, Odisha Finance Minister Pradip Amat said.


While total annual implication on enhancement of DA and DR comes to Rs 676.90 crore, the additional requirement of fund during 2016-17 towards the hike with effect from January 1, this year, including arrears, comes to Rs 789.72 crore, he said.

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