The Hindu : Andhra Pradesh News : Dearness Allowance hiked for Government staff

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Wednesday, Jun 08, 2005

Andhra Pradesh

Andhra Pradesh

Dearness Allowance hiked for Government staff

Special Correspondent

Additional burden on exchequer put at Rs. 198 crores annually

HYDERABAD: The State Government has sanctioned increase in dearness allowance (DA) for its staff, dearness relief to pensioners and an ad hoc hike of Rs. 25 per month to part-time assistants and village servants, all effective from January 1, 2005.

This decision, which will place an additional burden of Rs. 198.38 crores annually on the exchequer, was taken by the Chief Minister, Y. S. Rajasekhara Reddy, after he met representatives of employees' service organisations here on Tuesday.

The DA hike to Government staff, those of the local bodies and aided institutions, including universities, who are all drawing 1999 pay-scales, will be at 2.424 per cent of the pay working out to a cumulative 36.81 per cent, with the monetary benefit effective from the month of the issuing of orders, a press release issued by the Chief Minister's office said.

It will be at 3 per cent (cumulative 67 per cent) in case of teachers of affiliated degree colleges, both Government and aided, and universities, drawing 1996 UGC scales.

Arrears

Arrears for the period from January 1, 2005, up to the date when the orders are issued, will be credited to the General Provident Fund accounts of the employees concerned.

Employees' welfare

The release said that that dearness relief hike for State pensioners would be at 2.254 per cent of the basic pension (cumulative 36.81 per cent) and 3 per cent (cumulative 67 per cent) in case of UGC pensioners.

The Government clarified that the DA hike in case of State Government employees, who were drawing the emoluments as per the pre-revised scales of pay of 1986 and 1993, would be sanctioned only after receipt of orders from the Union Government.

The extra burden to be borne by the Government on account of its 5.6 lakh employees due to the hike is Rs. 133.69 crores; Rs. 30.4 crores on account of the 3.38 lakh employees of the local bodies and aided institutions; Rs. 32.46 crores due to the 3.82 lakh pensioners and Rs. 1.74 crores due to the 58,000 employees of the village establishment.

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