The state government announced in an order that government servants who are qualified for the seventh revised pay scale will be eligible for a monthly dearness allowance at a rate of 31 percent beginning July 1, 2021.
The state administration has approved a 3% rise in DA for state employees, according to the official statement. Around 2.5 lakh employees and pensioners will benefit from the increase in dearness allowance. Employees' DA has been enhanced to 31% as a result of this.
This is a wonderful piece of news that has arrived for Uttarakhand state government employees. From July 1, 2022, their pay has been increased. The statement was issued by the Pushkar Singh Dhami government soon before the state's by-elections.
What is the Dearness Allowance (DA)?
Government employees and pensioners receive Dearness Allowance and Dearness Relief. Dearness allowance is a component of central government employees' and pensioners' salaries.
The government revises the DA as well as the DR component twice a year, in January and July, to account for rising inflation and price increases. However, depending on whether they work in the urban, semi-urban, or rural sector, DA differs from person to employee.
The Dearness Allowance (DA Hike) is revised twice a year for central government employees. The most current change is set to take place in July this year. The last time it was updated was in January 2022.
Is there a new formula for pay structure?
Justice Mathur stated at the time of the 7th Pay Commission's recommendations that they wish to convert the pay structure to the new formula (Aykroyd Formula). In this case, the salary is determined by the cost of living. The need of the hour is for employees to be paid a salary that keeps pace with inflation.
Wallace Ruddell Aykroyd, the author, devised the Aykroyd formula. He believed that when the price of their product increased, so should the salary of their employees.
