The Odisha government on Friday raised the dearness allowance of state government employees by 10% at a time when Centre has put on hold the DA increment for lakhs of its employees and pensioners till July 2021 due to the Covid-19 crisis.
The DA hike will come into effect retrospectively from July 1, 2019, official sources said.
“Considering the overall financial resources and fiscal target stipulated under Odisha Fiscal Responsibility and Budget Management Act, 2005, the State Government has been pleased to release the additional dose of DA of 10% enhancing the same from the existing rate of 154% to 164% on the Basic Pay and Grade Pay taken together with effect from 01.07.2019 in respect of State Government Employees, who are drawing pay in pre-revised scales under the ORSP Rules, 2008,” the letter of the finance department said.
The hike is applicable for state government employees and those of aided educational institutions drawing pay under ORSP Rules, 2008.
Teaching and non-teaching staff of state universities, medical college teachers, subordinate judicial officers, work-charged employees drawing regular scale of pay and job contract workers will also be eligible for payment of increased DA.
The increased DA will be paid in cash and can be drawn in the pay bill of May 2020 and onwards. The payment of DA arrears from July 2019 to April 2020 will be drawn and disbursed after payment of salary of May 2020.
The rise in DA for government employees has come at a time when the state’s revenue collection has come down sharply due to lockdown.
Last month, the Odisha government had announced deferment of 50% in gross salary in respect of the all India service officers—the Indian Administrative Service, Indian Police Service and Indian Forest Service.
Similarly, it also announced deferment of 70% in the gross salary in respect of the chief minister, ministers, MLAs, chairperson of all corporations and elected representatives of all urban local bodies.
However, the deferred amount will be paid in the next month’s salary.
The Centre’s move to freeze the payment of increased DA has already been challenged in Delhi High Court citing that it violates of provisions of Article 360 of the Constitution.
The petition by N Pradeep Sharma said that the right to receive salary is a property coming within the purview of Article 300A of the Constitution and it can be deprived only by authority of law.
