Tuesday, April 26, 2011

Fatter pay cheques for state employees

   MUMBAI: The state government has decided to enhance the dearness allowances for employees of the state government with effect from May 1 onwards.

   The dearness allowance has been increased from 45% to 51% at par with central government employees.

   Chief minister Prithviraj Chavan approved the decision on Monday. While there was a demand to apply it from January onwards, the government has rejected the demand.

   The move is likely to cost the government Rs150 crore monthly, i.e. Rs1800 crore in a month. Some other states have applied the hike from January onwards, the state government however felt that an additional burden of Rs 600 crore would be too much to handle.


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