The dearness allowance (DA) hike for State government employees approved by the cabinet will be applicable from 1 January 2017.

The State Cabinet on Wednesday approved a 11% hike in dearness allowance (DA) benefiting 4.8 lakh(approx.) State Government employees.

“The State Cabinet chaired by Chief Minister Mehbooba Mufti approved the  release of DA installment at the rate of 7% of pay, from July 2016 and 4 percent from January 2017 raising the total Dearness Allowance of the State Government employees from 125% to 132% from 1.7.2016 and 132% to 136% from 1.1.2017” an official statement said.

The arrears on account of additional installments from July, 2016 and from January, 2017 up to May 2017 shall be credited to the individual GPF accounts of Government employees in the month of June, 2017 and shall form part of the monthly salary from there onwards.

In respect of such of the State Government employees, who are governed by the New Pension Scheme, the arrears on account of additional installments from July, 2016 and January 2017 up to May 2017, shall be paid in cash in month of June, 2017 and the employees’ share at the rate of 10% shall be deducted at source and credited to their PRAN numbers along with the matching share by the employer. Thereafter, the enhancement in the DA shall form part of the monthly salary.

Enhancement in DA will also apply to the work charged/whole time contingent paid employees, working in a regular time scale, an official handout said.

Cabinet approved the release of the Dearness Allowance installment at the rate of 7% from 1.7.2016 and 4% from 1.1.2017 raising the total Dearness Allowance of the State Government pensioners/family pensioners from 125% to 132% from 1.7.2016 and from 132% to 136% from 1.1.2017 respectively.

The arrears on account of the enhanced rate of Dearness Allowance from July, 2016 and January, 2017 up to May 2017 shall be paid to them in cash in the month of June, 2017 and shall form part of the monthly pension/family pension there onwards.