Chandigarh: The Punjab government on Monday increased the dearness allowance of its employees to 28 per cent of the basic pay from the current 17 per cent, putting an additional burden of Rs 440 crore per month on the exchequer.
The decision was taken in a Cabinet meeting chaired by Chief Minister Charanjit Singh Channi, just months ahead of the Punjab Assembly polls.
The move will put an additional burden of Rs 440 crore per month on account of increased DA from 17 to 28 per cent, said Channi while addressing the media here.
The DA has been increased with effect from July, said Channi.
He said employees are the backbone of the state administration and reiterated his government’s firm commitment to accord the highest priority to their welfare.
Channi said the state government has resolved most of employees’ issues to their satisfaction and they have called off their strike and resumed work with immediate effect.
He also announced that the employees who were recruited after January 1, 2016 will also be given the benefit of a minimum 15 per cent increase in the revised pay on par with other employees.
However, the pay of a junior employee would not be fixed higher than that of his seniors.
The CM said representatives of various employees associations assured him that they would not follow the path of agitation rather get their issues resolved through mutual discussions across the table.