HT Digital
Thursday, October 24: Arunachal Pradesh Chief Minister Pema Khandu has announced a 3 percent hike in the Dearness Allowance (DA) and Dearness Relief (DR) for state government employees, All India Service Officers posted in the state, Central Government employees on deputation, and pensioners. This decision brings the DA and DR rates up from 50 percent to 53 percent, with the revised rates effective from July 1, 2024. The increase aligns with the central government’s move to provide additional financial support to employees in light of inflationary pressures.
This announcement brings much-needed relief to thousands of state employees and pensioners who have been grappling with rising living costs. DA and DR are provided to government employees and pensioners as a cost-of-living adjustment and are revised periodically based on inflation rates. The new rates are expected to offer better support to meet the rising expenses, particularly in light of increasing prices of essential goods and services.
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In addition to the DA and DR hike, the state government has also announced an increase in House Rent Allowance (HRA). The revised HRA will now be 30 percent, 20 percent, and 10 percent for employees residing in X, Y, and Z category towns, respectively. This adjustment aligns with the central government’s decision to raise HRA, providing parity between the two tiers of governance and ensuring that Arunachal Pradesh’s state employees receive similar benefits to their counterparts across India. The categorization of towns into X, Y, and Z is based on population density and urbanization levels, with X category towns representing the most urbanized and densely populated areas, and Z being the least.
The increase in HRA is particularly significant for employees living in urban centers, where housing costs have seen a steady rise. The revised HRA rates will help employees better manage their housing expenses and alleviate some of the financial burden associated with living in high-cost urban areas. By aligning the state’s HRA policy with that of the central government, the state administration is ensuring equitable treatment for its employees, regardless of their location within the country.
This combined financial relief package, encompassing both DA/DR and HRA increases, is expected to have a significant fiscal impact on the state’s budget. For the period between July 2024 and March 2025, the total financial implication of these changes is estimated to be Rs. 63.92 crore. While this represents a considerable expenditure, the state government views it as a necessary step in maintaining the welfare of its employees and pensioners, who form the backbone of the state’s administrative and public service machinery.
The increase in DA and HRA comes at a time when employees and pensioners are grappling with the economic challenges posed by inflation. The rising cost of living, particularly in terms of housing, transportation, and everyday expenses, has placed additional financial strain on many households. By raising DA, DR, and HRA, the state government aims to provide much-needed financial assistance to help its employees maintain their standard of living in the face of these rising costs.
This move has been widely welcomed by employee unions and pensioners’ associations, who had been calling for an increase in allowances to counter the growing inflationary pressures. The alignment with central government policies is seen as a positive step towards ensuring that state employees and pensioners in Arunachal Pradesh receive fair and adequate compensation for their services.
Chief Minister Pema Khandu emphasized the government’s commitment to supporting its employees and pensioners, noting that they are key contributors to the state’s development. He acknowledged that the rising cost of living has been a challenge for many and expressed his hope that these revised allowances would provide some relief. The state government, he assured, remains committed to implementing policies that safeguard the interests of its workforce while ensuring the state’s financial sustainability.
The increased allowances are also expected to boost morale among state employees, encouraging greater productivity and motivation. By addressing the financial concerns of its workforce, the government is fostering a more positive and supportive work environment, which is crucial for effective governance and public service delivery.
As the implementation of these revised allowances takes effect, employees and pensioners across the state can expect to see a positive impact on their monthly income. For many, this increase will provide the extra financial cushion needed to meet their expenses more comfortably, particularly in light of ongoing economic challenges. The government’s decision is a reflection of its responsiveness to the needs of its employees and its commitment to their well-being.
