In a Diwali gift to its employees, the Chandigarh administration has released 7% dearness allowance (DA) which has been pending since July.
The move will benefit more than 20,000 employees working in different departments of the administration.
The UT administration has enhanced the rate of DA payable to all employees working in Chandigarh, including those on deputation from other states, in anticipation of orders from the Punjab government from the existing rate of 100% to 107% with effect from July 1, 2014.
According to the order issued, the employees would be paid DA in cash and expenditure involved would be met from within the sanctioned budget of the respective department during the financial year 2014-15.
The DA instalment this time is being released to all employees working in Chandigarh as a special case
in anticipation of receipt of DA circular from the Punjab government.
The release of this instalment of DA would be further subjected to the condition that the excess payment, if any, made on account of DA to the individual employee in excess to his entitlement would be recovered as per rates of the DA circulated by the Punjab government in due course of time.
Welcoming the decision of the administration, Co-ordination Committee of Government and MC Employees convener Rakesh Kumar said the administration had done the right thing by accepting the demand for the release of DA for which they had to put up a struggle.