Gujarat Government Boosts Dearness Allowance for State Employees

Gujarat Chief Minister Bhupendra Patel announced a hike in dearness allowance for state government employees following a cabinet meeting. Effective from January 1, 2025, this increase aligns with central government rates and benefits 4.78 lakh employees and 4.81 lakh retirees, leading to an annual expenditure of Rs 946 crore.

In a recent state cabinet meeting chaired by Gujarat Chief Minister Bhupendra Patel, a pivotal decision was reached to enhance the dearness allowance for state government employees, aligning with the central government's standards. This adjustment will come into effect from January 1, 2025, according to an official announcement.

State government spokesperson and Health Minister Rushikesh Patel disclosed that employees under the Seventh Pay Commission are set to receive a 2 per cent boost in dearness allowance, while those governed by the Sixth Pay Commission will see a 6 per cent increase. Notably, arrears for the dearness allowance covering the period from January 1 to March 31, 2025, will be disbursed in a single instalment with the April salary.

This allowance hike is slated to benefit approximately 4.78 lakh state employees, including sectors such as the panchayat services, and about 4.81 lakh pensioners. The state is expected to allocate a total of Rs 235 crore for arrears and incur an additional annual expense of Rs 946 crore on salaries, allowances, and pensions. Under Chief Minister Bhupendra Patel's leadership, directives have been given to the Finance Department to ensure the decision's prompt implementation.

(With inputs from agencies.)