Chandigarh:
The Punjab government on Wednesday raised the Dearness Allowance (DA) rate payable to the state government employees and pensioners by 7 per cent, which will cost Rs 744.48 crore to the state exchequer.
The DA rates have been hiked from 58 per cent to 65 per cent with effect from January 1, 2012.
Disclosing this in Chandigarh today, Finance Minister Parminder Singh Dhindsa said the whole amount on account of enhanced DA due for the period from January 1, 2012 to June 30, 2012 would be credited to the General Provident Fund account of employees.
He said that from July 1, 2012, the enhanced DA would be paid in cash. The dearness allowance has been increased on the pattern of Centre, he added.
Mr Dhindsa said that in case of such employees, who have been appointed on or after January 1, 2004, enhanced dearness allowance due for the period from January, 2012 to June, 2012 would be paid in form of National Saving Certificates or Kisan Vikas Patras.
The Finance Minister said that in case of pensioners, the entire amount on account of enhanced dearness allowance would be paid in cash.