Patna, Oct. 8: The state cabinet today increased the dearness allowance (DA) for its employees, both serving and retired, by 10 per cent, the decision coming as a welcome, if expected, gift ahead of the festive season.
Over 2.6 lakh employees and 3 lakh pensioners will benefit from the increase, which will raise the DA component from 80 per cent of the basic salary to 90 per cent.
The additional DA would be paid from July 1 this year.
The upward revision of DA would cost the state exchequer an additional Rs 850 crore.
The hike is in keeping with the Centre’s move to raise DA for its staff by 10 per cent. The central hike came in the aftermath of spiralling inflation, especially the onion-fuelled food prices that hit a six-month high of 6.1 per cent in August.
Analysts expect the DA-driven salary jump to act as a stimulant for several sectors of the economy, especially consumer durables like ACs and washing machines, that have been pummelled by anaemic sales because of the runaway inflation, the RBI’s tight monetary policy and sluggish growth.
Former chief secretary and president of Bihar Pensioners Samaj, V.S. Dubey, is not too happy with the DA increase as it is a “routine affair”.
The government, he said, should instead take steps to check prices as else the benefit of enhanced DA would be nullified.
Holiday: The cabinet has approved a government holiday on Kabir Jayanti, which will be observed on June 13 next year.