The Gujarat government has raised the DA by 4% and has also raised the NPS contribution.
Ahmedabad: As the Lok Sabha elections are around the corner, the Gujarat government has made a public announcement that there will be a 4% hike in the dearness allowance (DA) for those on its payroll and pension schemes. This would mean that the earlier 42% DA figure for its employees is now being raised to a new total of 46%.
On top of that, the contribution from the government towards its employees’ National Pension Scheme (NPS) has also been raised. Furthermore, the conversion of LTC cash for 10 leaves being accumulated now follows the revised standard pay based on the 7th Pay Commission’s amendments.
DA Hike Applicable From This Month
The DA has been hiked with effect from July 1, 2023, and employees will be given arrears for the last eight months, it said. Around 4.45 lakh state government employees and 4.63 lakh pensioners will benefit from the decision to hike DA, an official release said.
NPS Contribution Increased
The government has also decided to increase its own contribution to the National Pension System (NPS) from 10 per cent to 14 per cent, while state employees will have to pay 10 per cent, the release said. Notably, the difference in dearness allowance for the 8 months from July 1, 2023, to February 2024, will be distributed in three instalments along with salaries, the release said.
“The difference amount for the period between July 2023 and September 2023 will be paid with the March 2024 salary, while arrears for October to December 2023 will be disbursed with the April 2024 salary. Additionally, dearness allowance arrears for January and February 2024 will be included in the May 2024 salary for the employees,” it further said.
The Gujarat government employees have been demanding the restoration of the Old Pension Scheme (OPS) instead of the NPS. Under the OPS, retired government employees received 50 per cent of their last drawn salary plus DA as pension.
(With inputs from agencies)