Gujarat government announces 4% Dearness Allowance hike 

With this climb, the DA of Gujarat government workers, which was 42% earlier, will now be 46%, a state government resolution (GR) stated.

Boost for Employees and Pensioners

In a move timed just ahead of the Lok Sabha elections, the Gujarat government has announced a 4 per cent increase in dearness allowance (DA) for its employees and pensioners. 

According to a state government resolution (GR), this hike raises the DA for Gujarat government employees from the previous 42 per cent to 46 per cent. The increase is effective from July 1, 2023, and employees will receive arrears for the past eight months.

Impact and Beneficiaries

Approximately 4.45 lakh state government employees and 4.63 lakh pensioners are set to benefit from this decision. The government’s move aims to provide relief to its workforce amidst the ongoing economic challenges.

National Pension System Contribution

In addition to the DA hike, the Gujarat government has also decided to enhance its contribution to the National Pension System (NPS) from 10 per cent to 14 per cent. However, state employees will maintain their contribution at 10 per cent. 

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This adjustment reflects the government’s commitment to securing the financial future of its employees.

Employee Demands and Pension Scheme

Despite the DA increase and NPS adjustment, Gujarat government employees have been 

advocating for the restoration of the Old Pension Scheme (OPS) in place of the NPS. Under the OPS, retired government employees received 50 per cent of their last drawn salary plus DA as pension. 

The debate surrounding pension schemes remains an ongoing issue, reflecting the complexities and challenges in meeting the diverse needs and expectations of the workforce.

Source – BS