Assam government on March 31 approved the proposal to increase the dearness allowance of government employees by four per cent as a festive gift.
The hike will be in effect from January 1, 2023, but will be payable with this month's salary/pension.
Addressing the press, Assam cabinet minister Keshab Mahanta said that due to the calculation of the increase in the DA, the state government has decided to pay the salary/pension to the state government employees by April 10, 2023.
With this, the DA has been increased from the existing 38 per cent to 42 per cent respectively.
Also Read: Centre announces 4 per cent hike in dearness allowance for government employees
It is to be mentioned here that Assam is the first state in India to pay the revised DA to its employees.
Earlier, the central government increased the dearness allowance it provides to its more than one crore employees and pensioners by 4 per cent, bringing the total to 42 per cent from 38 per cent.
According to Union Minister Anurag Thakur, the government will spend Rs 12,815 crore to fund the hike in dearness allowance.
To compensate its employees and pensioners for rising costs, the government provides DA and dearness relief. The most recent consumer price index for industrial workers, or CPI-IW, serves as the basis for its calculation.
"... This will help around 47.58 lakh focal government workers and 69.76 lahks retired people. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” stated the central government in a statement.
The DA is reviewed once every two years.
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