Date:05/08/2004 URL: http://www.thehindu.com/2004/08/05/stories/2004080506890400.htm

Andhra Pradesh

More DA for staff, DR for pensioners

By Our Special Correspondent

HYDERABAD, AUG. 4. The State Cabinet today sanctioned additional dearness allowance (DA) to Government staff and those in aided institutions, including universities, and dearness relief (DR) to 3.88 lakh pensioners, both with retrospective effect from January 1, 2004.

The additional financial burden on the exchequer on account of the DA will be Rs. 123 crores per annum and Rs. 203 crores towards arrears to pensioners. The DA and DR were enhanced sometime ago but payments were kept pending.

By the same decision, the Cabinet also allowed an ad hoc hike of Rs. 25 per month to village administrative officers and village servants, this too from January 1, 2004.

To be credited into GPF

Briefing presspersons later, the Information Minister, Mohd Ali Shabbir, said the DA would be paid in cash with effect from August 1 payable in September along with August salary but the DA arrears due for the period from January 1, 2004, to July 31, 2004, will be credited into the General Provident Fund account of the employee. In case of pensioners, the arrears of relief for the same period will be paid in cash next month along with the August pension. The rate at which the DA and DR are being allowed, is 1.63 per cent of pay/pension and this works out cumulatively to 31.9 per cent with reference to State Pay Scales of 1998, the Minister clarified. For aided institutions and universities, this would be 2 per cent cumulatively going up to 61 per cent with reference to UGC Pay Scales/Judicial Pay Scales of 1996. The rates would be in accordance with the existing procedures and norms for those continuing in pre-revised scales.

Arrears for pensioners

Mr. Shabbir announced that the arrears due to pensioners for the period from July 1, 2001, to December 31, 2003, would be paid fully and immediately to those drawing less than Rs. 3,000 per month who numbered 1,89,149 and to the extent of 50 per cent in case of those drawing more than this.

The second instalment for the second category covering 1,69,425 pensioners would be cleared during next financial year.

He said the Government had released the withheld instalments of DR for the period from July 1, 2001, to July 1, 2003, while the arrears for January and February 2004 were paid in cash.