The Punjab government on Monday announced a hike of 12% in dearness allowance (DA) for state government employees and pensioners who are getting their pay on the basis of unrevised scales.
Stating this, finance minister Parminder Singh Dhindsa said the DA rate had been enhanced from 139% to 151% of the unrevised basic pay with effect from July 1, 2012.
He said the entire amount on account of enhanced DA due for the period from July 1 to August 31, 2012, would be credited to the General Provident Fund (GPF) account of employees. He said this amount would be deemed as additional in the GPF accounts and the interest on this amount would be payable from the first day of the next month. He stated that with effect from September 1, 2012, enhanced DA would be paid in cash.
The finance minister stated that in case of pensioners, the entire amount on account of enhanced DA would be paid in cash with effect from July 1, 2012. He said other conditions for the payment of DA would remain the same.