The Tamil Nadu government has announced that it will hike the Dearness Allowance by 4% starting from January 1, 2023. This will be the first increase since 2009 and will affect all employees below the rank of Joint Secretary for employees of the State Government. This hike will be effective from 1st July, 2019.
The announcement was made by Finance Minister Manish Tiwari in the state assembly today. The Finance Minister also said that he would soon make an announcement regarding a hike in Pensionary benefits as well.
The government has also announced that it would soon bring an ordinance to implement the recommendations of the 7th Pay Commission, which is expected to be passed by Parliament before its implementation on 1st January 2023. It will be increasing the Dearness Allowance (DA) of employees by 4% effective from April 1, 2023.
The DA hike is part of the state’s efforts to ensure a minimum wage for workers in Tamil Nadu and reduce the high incidence of poverty. The state government had earlier reduced the DA by 40%.
Tamil Nadu has a population of over 104 million people, making it one of the largest states in India with respect to population size. It also has a GDP of ₹3 lakh crores (US$44 billion) for government employees on Thursday. The DA hike is effective from today.
This comes after the Supreme Court ruled that the state government cannot implement any increase in its employees’ salaries without first consulting them. The court also ordered that all pending demands be paid before implementing any new increases.
The government has been criticized for not paying its employees’ dues. The Tamil Nadu Employees Federation has claimed that the government owes its employees Rs 6000 crores in unpaid salaries and allowances, according to reports by News18 India.
The DA hike is one of several recent moves by the state’s ruling AIADMK party to improve its public image following widespread criticism over potholed roads, crumbling infrastructure and other issues in recent years.
Tamil Nadu Government has announced a 4% hike in Dearness Allowance for employees. The new rate will be effective from 1st of July, 2023 and it is applicable to all government employees who are working in Tamil Nadu.
The government has also decided to increase the salary of non-gazetted employees by 3%. The new salary structure will be effective from 1st April , 2023This is being done to help the common man meet his expenses.
The last time the government increased Dearness Allowance was in 2012, when it was increased by 5%. Since then, it has been at par with the Central government’s decision.
On 18th May, Tamil Nadu government has announced 4% hike in Dearness Allowance.
The new Dearness Allowance would be applicable from July 1, 2023. The Dearness Allowance will be paid to employees who have completed 1 year of continuous service and those who have completed more than 5 years of continuous service.
For those who have completed less than 1 year of continuous service, the existing Dearness Allowance will continue to be paid till end-2024.