Gujarat Announces 4% Rise In Dearness Allowance For State Government Employees From July 2023

With an intention to benefit 4.45 lakh employees and 4.63 lakh pensioners of Rajya Seva, Panchayat Seva, and other services, the Gujarat government on Thursday announced a hike of four percent in the Dearness Allowance (DA), which will be effective retrospectively from July last year.

The Gujarat Chief Minister Bhupendra Patel on Thursday announced a 4 per cent rise in DA for state government employees nationwide, starting from July 1, 2023. Around 4.45 lakh Karma Yogis and 4.63 lakh retired employees, encompassing pensioners from the state government, Panchayat Seva, and other sectors, will benefit from this increment. The difference in DA for the 8 months spanning from July 1, 2023, to February 2024, will be distributed in three instalments along with salaries.

Apart from that, concerning employee and state government contributions to the enhanced pension scheme NPS, the Gujarat CM also informed of a change. The employees will now be required to contribute 10 per cent under NPS, while the state government will contribute 14 per cent towards it.

Moreover, the employees will receive a cash conversion payment for 10 accumulated leaves for LTC, calculated based on the revised pay scale of the 7th Pay Commission, whereas previously it was based on the pay scale of the 6th Pay Commission.