Bihar Chief Minister Nitish Kumar on Sunday, August 15, 2021, announced the Dearness Allowance (DA) hike for state government employees and pensioners on Independence Day.
While addressing the gathering at Patna’s Gandhi Maidan after the flag hoisting ceremony, CM Kumar said the Bihar government will hike DA by 11% to 28% for state government employees and pensioners from July 1, 2021, on the lines of the Centre’s announcement.
The 7th Pay Commission announced earlier that all Central government employees would be receiving a 28 per cent hike in their DA beginning from July 2021. The DA hike was brought up by 11 per cent from the previous 17 per cent. As a result, nearly 65 lakh pensioners and 48 lakh Central government employees would be benefiting from the hike.
The Department of Expenditure at the Ministry of Finance in an Office Memorandum said DA hike announced for January 01, 2020 (4%), July 01, 2020 (3%) and January 01, 2021 (4%) will be subsumed in the revised DA. So, the new DA rate applicable from July 01, 2021 to central government employees will be 28% (Current DA of 17% plus an additional 11% DA).
He said the state government will soon issue a notification for the implementation of the announcement.
After the latest revision, the new DA stands at 28% of the basic salary or pension. The state government employees were receiving dearness allowance at the rate of 17%. However, from July 1, 2021, the DA has been increased to 28%.
The chief minister, however, did not mention by what amount will the state government’s exchequer be impacted as a result of the DA hike for state government officials, employees and pensioners.
