In what can be seen as a Diwali gift to state government employees, the Karnataka state government has increased the dearness allowance (DA) of the employees by 2 per cent, according to a Tweet by ANI. With this hike coming, the DA of employees will scale to 45.25 per cent from 43.25 per cent. This is the second hike in the last four months as the rates of payable DA to the state government employees were raised to 43.25 from 40.25 per cent (as per a report by The New Indian Express) with effect from 1st January, 2017 moving a step ahead from the Revised Pay Scales 2012.
In the previous hike, the DA was paid in cash to the employees, however, the mode of payment this time is not disclosed as yet. The Dearness Allowance (DA) is a cost of living adjustment allowance paid to the government employees and is calculated as a percentage of an Indian citizen’s basic salary to mitigate the impact of inflation on people.
More details are still awaited on this announcement. Keep checking this space for updates.