The 7th Pay Commission announced earlier that all Central government employees would be receiving a 28 per cent hike in their Dearness Allowance (DA) beginning from July 2021. The DA hike was brought up by 11 per cent from the previous 17 per cent. As a result of this nearly 65 lakh pensioners and 48 lakh Central government employees would be benefiting from the hike. Following that announcement, a few states also announced that they would be bringing up the DA rates for their employees. Keep in mind that the government is yet to release the DA for the month of June. If that is also released, this would mean that the DA increase to a further 31 per cent, leading to yet another increase in the government employees’ salaries.
The DA for June 2021 has not yet been decided, however, according to the data from the AICPI, the DA will increase by a further 3 per cent, for the period of January to May 2021. This brings up the final tally up to 31 per cent. It should be noted that there was a DA hike previously in January of 2020 by 4 per cent and then again by 3 per cent in June of 2020. January of 2021 saw a further increase of 4 per cent, which brought up the DA to 28 per cent
With that said, here is a list of states that have pledged to hike the state-wise DA and the rates by which it has increased for each.
1) Uttar Pradesh (UP)
The UP-state government announced that the DA would be hiked by 28 per cent in the state for government employees. This change will permeate and extend to around 16 lakh government employees and about 12 lakh pensioners according to reports.
2) Jammu and Kashmir
The government of Jammu and Kashmir states that the government employees and pensioners would see their DA hiked by 17 per cent, which brings it up to 28 per cent. This change was made effective from the 1st of July.
A cabinet meeting, chaired by Assam Chief Minister Himanta Biswa Sarma, came to a consensus that the DA for government employees would be increased as well. This makes Assam one of the most recent entrants into the list of states hiking the DA rates, just ahead of Independence Day. The increase was announced as an 11 per cent hike, making the DA 28 per cent.
The Jharkhand state government also increased the DA rates for pensioners and government employees by 11 per cent from the previous 17 per cent. DA will be issued at a 28 per cent add-on to the base salary.
The Haryana state government announces a DA hike of 11 per cent bringing the tally up to 28 per cent. This was set to take effect from the beginning of July 1, 2020.
This state announced that it would be releasing additional instalments of the Dearness Allowance. The DA rate would be brought up to 21.5 per cent, unlike the other states on the list. The state had previously frozen the DA in light of the hurdles brought on by the pandemic.
The Rajasthan government announced that employees and pensioners could expect to see a 28 per cent DA hike, up from the previous 17 per cent. The government also approved an increase of up to 2 per cent to the house rent allowance that is given to government employees.