Himachal government announces 4% DA hike for state employees ahead of festive season

In a move to support its employees amidst rising inflation, the Government of Himachal Pradesh has announced a 4% increase in Dearness Allowance (DA) for state government employees. This increase raises the current DA rate from 38% to 42%, effective from October 1, 2024. The decision was formalized through an official memorandum from the Finance Department and will benefit employees covered by the Himachal Pradesh Civil Services (Revised Pay) Rules, 2022.

The new DA will be disbursed in cash with the October 2024 salary, scheduled for release on October 28, 2024. In addition, employees will receive arrears dating back to January 1, 2023, with detailed instructions on how the arrears will be distributed to follow. This increase will also apply to officers of the All India Services and those under UGC pay scales.

For employees enrolled in the New Pension Scheme (NPS), specific guidelines regarding the regulation of DA will be issued separately. The government has clarified that amounts of 50 paise and above will be rounded up to the nearest rupee, while amounts below 50 paise will be disregarded.

This DA hike, which comes just ahead of Diwali, aligns with the state’s commitment to cushioning its employees against inflationary pressures. Notably, on the occasion of Dussehra on October 11, Chief Minister Sukhvinder Singh Sukhu had announced the 4% DA hike along with additional financial benefits for 3.5 lakh state employees and retirees, a move that will cost the state ₹600 crore annually.

In a festive gesture, the government has also announced that salaries and pensions will be released on October 28, ahead of the usual disbursement dates of November 1 and November 9, respectively, to ensure employees and pensioners have funds in hand before Diwali.

In a related development, the Dearness Allowance for central government employees is also set to rise from 50% to 53% of basic pay, according to a recent announcement.