Bhubaneswar | Jagran Business Desk: As a part of a gift for state government employees for the upcoming festive season, the Odisha government on Friday announced an 11 per cent hike in dearness allowance (DA). It said that the decision will be effective retrospectively from July 1 this year.

In a release, the Chief Minister's Office (CMO) said that the move will benefit nearly four lakh regular employees and 3.5 lakh pensioners. It also noted that the latest hike has taken the DA of the government staffers to 28 per cent from 17 per cent.

"Considering the overall financial resources and fiscal target stipulated under Odisha Fiscal Responsibility and Budget Management Act, 2005, the State Government have been pleased to release additional dose of D.A. at 11 per cent enhancing the same from the existing rate of 17 per cent to 28 per cent on the Basic pay with effect from 01.07.2021 in favour of State Government Employees, covered under the ORSP Rules, 2017," it said.

Meanwhile, the state government has effected changes in the Group Insurance Scheme (GIS) in a bid to extend more financial benefits to its employees in case of death while in service. Under the revised plan, the employees in grade pay up to Rs 4,800, who have been paying Rs 7,500 for GIS, now have to pay Rs 20,000. The family of such employees, who were getting Rs 1.5 lakh in case of death, would now get Rs 4 lakh.

Similarly, the GIS payment for the staffers getting Rs 5,400 and above has been increased from Rs 12,000 to Rs 30,000. Their families would get Rs 6 lakh under the revised scheme instead of Rs 2.5 lakh previously. The increased GIS amount will be deducted from the salaries of the employees in 10 instalments as before, the CMO release said.

This apart, the state government has also increased the funeral allowance from Rs 5,000 to Rs 10,000 for both the grade pay. The GIS is a social security plan for government employees. In case of the death of an employee in service, his or her family gets financial benefits.

Posted By: Aalok Sensharma