Tripura declares 12% hike in DA by Chief Minister Manik Saha on Tuesday announced and Dearness Relief (DR) for state government employees and pensioners with effect from December 1. Thus, DA employees of the state administration from 8% to 20%.
According to Tripura Chief Minister Manik Saha, a total of 1,04,600 regular employees and 80,800 pensioners will benefit from the decision. In addition, part-time employees will receive a benefit, as their remuneration has been almost doubled.
Tripura declares 12% hike
The Chief Minister said the government’s decision to increase DA/DR by 12% will bring an additional amount of ₹120 crore per month and ₹1,440 crore annually.
Saha said, “Despite the paucity of resources, the government has revised the wage structures to benefit thousands of employees and their families.”
“A total of about ₹ 120 crore per month and ₹ 1,440 crore per annum additional cost for the same,” he said.
Deputy Chief Minister Jishnu Debbarma, who holds the finance portfolio, said there had been criticism for not increasing DA for government employees and welfare pensions to beneficiaries. “The government of Tripura aims to benefit the maximum number of people. With a bold step, we want to set a benchmark for civil service employees,” he said.
Asked how the additional burden of ₹1,440 crore per annum will be managed, Debbarma said, “This is the art of managing finances effectively amid limited resources. It takes a little courage and a big heart to benefit the people to the maximum.”
So, what exactly is DA?
Dearness Allowance (DA) is a cost-of-living allowance paid by the government to public sector employees and their pensioners.
The government usually revises the DA rate every six months. This is done to compensate for the loss of purchasing power of monthly salary/retirement wealth due to inflation.
How is DA calculated?
It is calculated as a percentage of the basic salary.
For central government employees: Percentage of dependency allowance = ((AICPI average (base year 2001=100) for last 12 months -115.76)/115.76) *100
AICPI stands for All India Consumer Price Index.
For public sector (central government) employees, this formula is used:
Debt Loss Allowance Percentage = ((AICPI average (base year 2016=100) for last 3 months -126.33)/126.33) *100