The Tamil Nadu government will have an additional annual expenditure of Rs 2,359 crore.
Tamil Nadu Chief Minister MK Stalin has increased the dearness allowance by 4%. The notification will be of help to government employees, including teachers, pensioners and family pensioners. Earlier, the dearness allowance was 34%, which has now reached 38% with immediate effect.
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The hike in the allowance will help some 16 lakh government employees. The decision has further extended the financial burden of the state government. The Tamil Nadu government will have an additional annual expenditure of Rs 2,359 crore.
In an event in Chennai, MK Stalin said that the government is ready to take an additional burden for the welfare of the people. The decision comes against the backdrop when government teachers in the state were protesting to increase the dearness allowance.
Protesting teachers were demanding equal pay for equal work. To work on the impasse, the Tamil Nadu government formulated a three-member committee, headed by Finance Secretary-Expenditure to build a roadmap for the hike in the dearness allowance.
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The government decided to take the recommendation of the panel and has thereby implemented the increase in the dearness allowance by 4%. The CM termed the hike a New Year Gift by the government to its citizens. Further, he appealed to the administration and staff to cooperate with the government in its efforts, aiming for people’s welfare and prosperity.
As reported by the news website WION, central government employees may get a hike in their salary at the start of the new year 2023. As per several reports, dearness allowance and dearness relief will be raised by 3-5% in March 2023, with effect from January 2023. The dearness allowance will rise by up to 4-3% as a result of this increase.