Diwali bonanza for employees as Bihar govt clears hike in allowances

The major hike in benefits comes in the form of house rent allowance.

In a pre-Diwali bonanza for Bihar government employees, the cabinet on Tuesday gave its nod for the revision of various perks and allowances on the pattern of seventh pay commission report.

The amendment in the rates of allowances had been pending since the introduction of revised pay-scales from April this year. (HT File Photo)

The amendment in the rates of allowances had been pending since the introduction of revised pay-scales from April this year. Government employees would now be entitled for a hike in their entitlements from the date of notification, likely to be issued on Wednesday.

The major hike in benefits comes in the form of house rent allowance (HRA). An employee working in the state capital (Y category) will now get 16% of their enhanced basic salary, while it will be 8% for those located in other important towns—classified as Z category.

Raising the number of slabs, finance department has fixed HRA at 6% of the basic pay for unclassified towns, e.g. Danapur , and 4% for government staff posted at block and police stations in rural areas, said Upendra Nath Pandey, special secretary, cabinet department, adding “for state employees posted outside the state (Delhi) it will be payable at the rate of 24%.”

Employees posted in other department, on deputation in same station, will get an additional entitlement of 2.5% of the basic salary subject to a cap of Rs 2000, while it will be 4% for those sent to serve in other stations with a ceiling of Rs 4,000.

To encourage enhancement of professional knowledge, the journal allowance for medical professionals has been revised from Rs 3000 to Rs 4,500 per annum. The dress allowance for ANM has been fixed at Rs 1800, while drivers will get a monthly allowance of Rs 1000.

The big incentive, in the form of leave travel concession (LTC), will now be available for travel throughout the country once in every four years.