Uttarakhand's Diwali Gift | 04 Nov 2024

Why in News?

Recently, Uttarakhand announced a festive increase in Dearness Allowance (DA) for state government employees as a Diwali benefit.

Key Points

  • DA Hike:
    • Uttarakhand raised the DA for government employees by a set percentage, aiming to mitigate inflation's impact on household expenses.
    • The DA has been increased from 50% to 53% per month.
    • The dearness allowance hike applies to all regular and full-time state employees and UGC-affiliated officials, retroactive from 1st July, 2024, with arrears from July to September 2024 payable in cash.
    • The increased DA is effective immediately, covering employees and pensioners under the state government.
  • Economic Impact:
    • This increase supports employees’ purchasing power, particularly significant during the festive season when expenses are typically higher.
    • Similar DA adjustments are seen across states as they aim to provide financial relief amidst rising living costs.

Dearness Allowance (DA)

  • It is the cost-of-living adjustment to offset inflation, provided to government employees and pensioners. It is calculated as a percentage of the basic salary.