SRINAGAR: Jammu and Kashmir government on Thursday issued a new order regarding the payment of Dearness Allowance (DA) to its employees. According to the government order, all regular government employees under the 7th Pay Commission will now be eligible for an increased DA of 42% of their basic pay, effective from January 1, 2023. This revised rate is a 4% increase from the previous rate of 38% of the basic pay.
First, let’s understand what Dearness Allowance is. It is an allowance given by the government to its employees to offset the impact of inflation and rising prices of goods and services. Essentially, it’s a way to help employees keep up with the cost of living. The amount of DA varies from state to state and is calculated as a percentage of the employee’s basic pay.
So, what does this mean for the employees? Suppose an employee’s basic pay is Rs. 20,000. Under the old rate of 38%, they would receive a DA of Rs. 7,600 (38% of Rs. 20,000). But with the new rate of 42%, they will receive a DA of Rs. 8,400 (42% of Rs. 20,000). This extra money will help the employees cope with the increased expenses due to inflation and rising costs of living.
The order also specifies that the term ‘Basic Pay’ in the revised pay structure means the pay drawn in the prescribed level in the Pay Matrix as per the 7th Pay Commission recommendations, excluding any other type of pay like special pay. This means that only the regular salary of the employees will be taken into consideration while calculating the DA.
Additionally, the order mentions that the arrears on account of the additional instalment of DA with effect from January 2023 shall be paid in cash in the month of May 2023 and shall form a part of salary from May 2023 onwards. This means that the employees will receive the extra money they were supposed to get from January 2023 in May 2023, along with their regular salary.