7th Pay Commission: Dearness Allowance Hiked by 4% For Govt Employees of This State

7th Pay Commission Latest News Today: Chief Minister Naveen Patnaik approved the proposal for a hike in the dearness allowance for state government employees.

7th Pay Commission: Ahead of New Year, the Odisha government hiked the Dearness Allowance (DA) of state government employees and pensioners by 4% under 7th Pay Commission. The latest DA hike has come as a New Year gift for the government employees of the state. In a statement, the Odisha government said the hike in DA will be effective retrospectively from July 1, 2022.

Chief Minister Naveen Patnaik approved the proposal for a hike in the dearness allowance for state government employees.

DA Hiked in September 2022

The Odisha government had in September announced a hike in dearness allowance (DA) in favour of State Government Employees, covered under the ORSP Rules, 2017.

The move to increase the dearness allowance by three per cent to 34 per cent from the existing 31 per cent was taken after considering the overall financial resources and fiscal target stipulated under Odisha Fiscal Responsibility and Budget Management Act, 2005.

For the unversed, the Dearness Allowance (DA) is the cost-of-living adjustment allowance which the government pays to the employees of the public sector as well as pensioners of the same.

In general, the government revises the DA rate every six months and this is being done to compensate for the loss in purchasing power of the monthly salary/pension wealth due to inflation.

How is DA different from HRA?

The government employees need to know that the DA is calculated as a specific percentage of the basic salary, which is then added to the basic salary along with other components like HRA.

However, the HRA is the salary component given by an employer to an employee to meet expenses related to the renting of accommodation. HRA applies to both private and public sector employees.