TN announces DA hike; Pongal bonus for govt employees

CHENNAI: The State government on Tuesday enhanced the Dearness Allowance (DA) for government employees, teachers and pensioners from 17 to 31 per cent. The State also announced a Pongal bonus for ‘C’ and ‘D’ category government employees and pensioners.

According to the order, the DA for government employees, teachers, other staff eligible to obtain DA and pensioners (including family pensioners) would be increased from 17 to 31 per cent. This would entail an additional expenditure of about Rs 8,724 crore for the State.

After State Finance Minister Palanivel Thia Rajan, citing the fiscal burden, announced in the budget that enhancement of DA for government employees will be deferred till April 1, next year, there was uproar among employees and teachers. Following this, Chief Minister MK Stalin, under Rule 110 of Tamil Nadu Assembly Rules, announced on September 7 that DA will be enhanced from January 1.

However, the government had not specified then, the percentage of increase that was being contemplated.

Employees had demanded and expected a raise of 11 per cent. The present DA hike would benefit about 16 lakh government employees and pensioners.

Based on the announcement, Stalin, stated in an order on Tuesday that despite financial stress, the government is implementing the increase of DA from January 1 considering the welfare of all government employees, teachers and pensioners.

The government also announced bonus for ‘C’ and ‘D’ category employees and pensioners. According to the order, the government will issue Rs 3,000 for ‘C’ and ‘D’ category employees, Rs 1,000 for all employees under special time scale pay and Rs 500 for all class of pensioners. The State has allotted Rs 169.56 crore for Pongal bonus and a total of Rs 8,894 crore for enhancing DA and Pongal bonus.

The hike would entail an additional expenditure of about Rs 8,724 crore and for festival cash gift, approximately Rs 169.56 crore