7th Pay Commission: Diwali bonus for Karnataka state employees as 3% hike in DA

New Delhi: In what could be good news for the employees of Karnataka government, the state government on Wednesday (October 27) announced a hike of 3% in Dearness Allowance (DA). With the latest revision, state government employees will receive DA at the rate of 21.5 per cent to 24.5 per cent of their basic pay.

The latest DA hike is the second in the current financial year. The state finance department has announced that the DA hike will be applicable retrospectively from July 1. This means that the employees will receive the DA arrears for the month of July, August and September 2021.

Apart from government employees, pensioners will also benefit from this step. The DA hike will be applicable to “full time government employees, employees of district panchayats, employees working on regular pay scale, full time employees of aided educational institutions and universities who are on regular pay scale.” The department said in its official order.

In addition, current and former employees on the UGC/AICTE/ACAR pay scale will also get the benefit of increment, the state finance department added in its order. Overall, the latest DA hike is expected to benefit six lakh employees apart from 4.5 lakh pensioners.

The Karnataka government’s 3% DA hike comes after the central government announced a 3% hike in dearness allowance and dearness relief to central government employees and pensioners earlier this month. Information and Broadcasting Minister Anurag Singh Thakur made this announcement. Read also: Paytm IPO: Offer size increased to Rs 18,300 crore as Chinese investor plans to sell more stake

The decision of the central government to increase the DA by 3 percent will cost the exchequer Rs 9,488 crore annually. Earlier, the central government had increased the DA and DR of its employees and pensioners from 17 per cent to 28 per cent. Read also: Air India sale: Center asks ministries, departments to clear dues, pay tickets

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