Tamil Nadu hikes dearness allowance of government employees and pensioners – Times of India

CHENNAI: Even while citing the high debt burden of the state to possibly put off implementing some of its poll promises, the DMK government on Tuesday announced increase in dearness allowance to its employees and pensioners that will result in the state incurring an additional annual expenditure of Rs 8,724 crore.
Chief minister M K Stalin has ordered increase of dearness allowance from 17% to 31%, an increase of 14 percentage points, which will result in more than 82% increase in dearness allowance for the employees and pensioners from January 1, next year.
On September 7, this year, Stalin had informed the state assembly, while making a statement under Section 110, about the state government’s intent to increase the dearness allowance for its employees and pensioners from January 1, 2022, the release added.
The chief minister also sanctioned an additional Rs 170 crore as Pongal gift for category ‘C’ and ‘D’ employees, besides pensioners, those on special timescale and those who retired from such services and former village administrative officers. While category ‘C’ and ‘D’ employees will receive Rs 3,000 as Pongal gift, for pensioners it will be Rs 500. People on special timescale will receive Rs 1,000 and former village administrative officers and those retired from special timescale will receive Rs 500 as Pongal gift from the state government.
Despite the state struggling under debt burden, the chief minister had ordered the sanction of the amount needed to pay the dearness allowance considering the welfare of the government employees and pensioners, the release said.