7th Pay Commission: Tamil Nadu announces 4% DA hike for 16 lakh govt employees, pensioners

7th Pay Commission: The Tamil Nadu Chief Minister MK Stalin on Wednesday announced that the state has approved a 4 per cent hike in 7th Pay Commission Dearness Allowance (DA) for state government employees and pensioners. 

The hike comes into effect retrospectively from the start of the financial year, 1 April 2023. The DA was increased from 38 per cent to 42 per cent, the release added.

"Considering the ongoing requests of government employees and teachers, Chief Minister MK Stalin has instructed to impose the rise beginning on April 1. According to a formal statement, it will help 16 lakh state employees, teachers, retirees, and family pensioners. The change will result in an increase in spending of ₹2,367 crore each year.

The move to raise DA for Tamil Nadu government employees would entail an additional expenditure of ₹2,366.82 crore annually to the exchequer. 

The DA hike will benefit 16 lakh government employees, teachers, pensioners and those receiving family pension, an official release said on Wednesday.

According to the statement, "Whenever the Union government announces a hike in DA, the state will immediately follow and announce the hike for the government staff in the future." This is due to the ongoing demand from teachers and government employees.

The Yogi Adityanath led Uttar Pradesh also announced 7th Pay Commission Dearness Allowance (DA) hike by 4%. The DA has been hiked from from 38% to 42%. 

The Dearness Allowance (DA) and Dearness Relief (DR) hike for Uttar Pradesh government employees with effect from 1 January 2023. 

In April, this year, the Nitish Kumar led-Bihar government also announced that the government will increase the dearness allowance (DA) of the state employees and pensioners by four per cent.

In March, Himanta Biswa Sarma-led Assam government hike in dearness allowance of state government employees to 42 per cent from 38 per cent.