Haryana hikes DA by 2% after much delay
The Haryana government has increased dearness allowance (DA) by 2% on the Center's pattern, taking it from 5% to 7% with retrospective effect from January 1, 2018. This will impact around 3L employees and 2L pensioners. DA hikes are implemented from January 1 and July 1 every year, but employees were worried about the significant delay in release of instalments this time.
What is dearness allowance?
DA is a fixed percentage of the salary which the public sector pays to its employees and pensioners to protect against inflation. As DA is directly linked to costs of living, it is different for employees living in the urban, semi-urban and rural sectors.
Hikes in DA for 5th and 6th Pay Commissions too
Making the announcement, Abhimanyu said DA for employees who are drawing their pay in the pre-revised pay-band/grade under the 6th Pay Commission, would also be hiked from 139% to 142% of pay. For those under the 5th Pay Commission, it went from 268% to 274%. Overall, this would put an additional burden of at least Rs. 320cr on the state exchequer.
'Delay in release of instalment indicates government's financial crisis'
The delay in release of DA installment left lakhs worried, especially as prices of fuel, vegetables and other basics continue to rise steeply. Not just in DA, the sanction of interest-free wheat loans to Class IV employees, which usually gets done in April, was also delayed this year to May. This clearly indicates the government's crisis, said Subhash Lamba, General Secretary, Sarv Karamchari Sangh.
