7th Pay Commission: Tamil Nadu Govt Hikes DA For Govt Employees By 3% Ahead Of Diwali

Tamil Nadu Chief Minister MK Stalin has announced a 3% increase in Dearness Allowance (DA) for over 16 lakh government employees, teachers, pensioners, and family pensioners.

This hike will raise the current DA from 50% to 53%, effective from July 1, 2024, providing significant financial relief to the beneficiaries.

The decision to raise the DA was made following the Union Government's similar move to increase the DA for its employees. While this adjustment is expected to benefit a large section of government employees and retirees.

Despite the financial impact, the Tamil Nadu government is committed to the welfare of its employees, who play a vital role in implementing various welfare schemes. The official press release issued on Friday emphasized that the state government remains dedicated to the well-being of its employees and pensioners, which led to the decision to enhance the DA rate.

Several government employee unions and teachers' associations have expressed their gratitude to Chief Minister Stalin for his compassionate approach in addressing their needs. This increase is seen as a timely measure to support the financial well-being of those dependent on government pay scales, especially in light of rising living costs.

With this adjustment, Tamil Nadu has aligned its DA structure with the Central Government's recent changes, ensuring parity for its employees and retirees. The move is widely welcomed as a step toward improving the economic stability of government staff across the state.

It will also place an additional burden of Rs 1,931 crore on the state exchequer.

The DMK government announced Diwali bonuses and ex-gratia payments for 2.75 lakh employees of state public sector undertakings (PSUs) and statutory boards for the 2023-24 fiscal year.

According to an official statement, eligible Group C and D employees of profit-making PSUs will receive bonuses ranging from Rs 8,400 to Rs 16,800, representing 8.33% of their salary, along with an 11.67% ex-gratia.