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U.P. merges 50 per cent DA with basic salary

Retrospective effect from April 1; 17 lakh employees to benefit

Photo: Subir Roy

ALL EARS TO QUERIES: Chief Minister Mulayam Singh Yadav at a Press conference in Lucknow on Tuesday.

LUCKNOW: Fulfilling a long-pending demand of over 17 lakh State employees, the Uttar Pradesh Government on Tuesday announced merger of 50 per cent Dearness Allowance (DA) with the basic salary.

Chief Minister Mulayam Singh Yadav, while making the announcement at a Press conference here, said the government would generate additional revenue to offset the burden of over Rs 970 crores arising from the new provision with retrospective effect from April 1, 2005.

The employees will get hiked salary from October, while the arrears for six months would be deposited in their Provident Fund (PF) account. With this merger the employees would receive hiked gratuity allowances, leave encashment allowances and pension component.

The State employees had threatened to go on an indefinite strike on the issue from Tuesday but later withdrew it following an assurance from the Chief Minister. On Monday, the Cabinet had authorised Mr Yadav to take a decision in this regard. The government had constituted two sub-committees to give its recommendation on the employees demand for merging half their DA with basic salary from April 2004. The Chief Minister assured that the common man would not be affected by the decision and no development project would be curtailed due to the extra financial burden on the government due to this hike.

Of the total employees who would be benefited by the DA merger, 7.5 lakh are State employees, 5.5 lakh teachers and non-teaching employees, 4 lakh pensioners and family pensioners and 50,000 employees of the aided bodies.

Several unions of the State employees and teachers welcomed the government's decision to implement merger of 50 per cent of the DA with the basic salary. -- UNI

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