7th Pay Commission Latest News: Here comes New Year gift from the state government of Gujarat to its 9 lakh employees. The state government as part of its 7th Pay Commission has on Wednesday increased the dearness allowance (DA) by five per cent.

With this, the DA for the state government employees of Gujarat would be 17 per cent. “The hike in DA will now be at par with the Central government employees,” Deputy Chief Minister Nitin Patel in Gandhinagar said. He also added that the five per cent hike will come into effect retrospectively from July 1, 2019.

As per updates, the latest hike from the state government will benefit over 5.11 lakh employees and 4.5 lakh pensioners.

“This month’s salary will be paid with new DA, arrears of previous months would be paid in a phased manner,” the deputy CM further added.

While making the announcement regarding the hike in DA, the deputy chief minister said it would put an additional burden of Rs 1,821 crore on the state exchequer every year.

In January last year, the state government had also hiked the DA of the state employees to nine per cent from seven per cent. The increase of two per cent in DA had come into effect retrospectively from July 1, 2018.

While making the announcement, the state government had said that the hike was in line with the Central government’s decision in July last year to give two per cent increase in DA to its employees.

In another development, the central government is also likely to announce a hike in Dearness Allowance (DA) for central government employees.

If reports are to be believed, the next DA from the Central government is due in January 2020. The prime reason behind the possible hike in DA is believed to be the rise in inflation from July to December.

A DA hike, meanwhile, is announced twice a year and is done between January and June, July and December every year.