Gujrat Chief Minister Narendra Modi announced an eight per cent increase in the Dearness Allowance (DA) of Gujarat Government employees with effect from January 1, 2010. This takes the allowance to 35 per cent from the existing 27 equivalent to the DA rate of central government employees.
The increased DA will be disbursed in cash from April 1 while the difference in the DA for the period from Jan 1 to March 31 this year would be deposited in their Provident Fund Accounts. Modi also announced a similar 8 percent increase in the DA of pensioners on a temporary basis.
The decision will benefit about 4.91 lakh employees and 3.25 lakh pensioners, costing the state exchequer additional Rs.687 crore and Rs.247 crore respectively making for a total of Rs.934 crore.
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