MP Government announces 7% D.A.

Madhya Pradesh Government announces 7% D.A.

BHOPAL: Barely a fortnight after enhancing travel facilities and extending air travel to state government employees, the Madhya Pradesh government announced another bonanza of 7% to its employees. The DA would be paid with effect from August 1, 2012.

The decision was taken at a meeting of the state cabinet presided over by the chief minister Shivraj Singh Chouhan here on Tuesday. The cabinet also approved the revised allowances and facilities to government employees in the context of the recommendations of the state pay commission.

A government spokesperson said that the cabinet cleared the pay commission’s recommendations and revised house rent allowance has been sanctioned to the employees residing in various cities and towns on the basis of 2001 population. Accordingly, 10% house rent allowance (percentage of total of pay band and grade pay) will be given in cities with over 7 lakh population, 7% in cities with 3-7 lakh population, 5 % in cities with 50,000 to 3 lakh population and 3% to employees in cities with less than 50,000 population.

Similarly, rates have also been fixed for eligibility of reimbursement of local conveyance allowance during travel, transportation of household goods on transfer, transfer subsidy and vehicle allowance among others. Rate of house rent allowance to employees posted in reserved areas has been fixed 1% more than that payable in the general areas. Besides, rates of reserved area special allowance have also been revised. In addition, amounts for initial grant and renewal funds payable to officers and employees of jail, home and forest departments have also been revised.

In the context of 6th central pay commission’s recommendations, pension commutation of state’s pensioners will be made at the rate of 8% annual interest as per directives issued by the union government. Revision of house rent allowance, reserved area house rent allowance, concessional house rent in reserved areas and non-commercial allowances will be implemented with effect from November 1, 2011. Other revised rates will be implemented with effect from August 1, 2012, the spokesman explained. The decision would entail an additional burden of Rs 616.42 crore to the state exchequer in the current financial year and an annual burden of Rs. 1056.72 crore, he said.

Source: TOI

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