Odisha Govt Sanctions 4% DA Hike for PSU Employees, Effective from January 2024

Bhubaneswar: The Odisha government on Wednesday approved a 4% increase in dearness allowance (DA) for employees of State Public Sector Undertakings (PSUs), raising it from 46% to 50%, effective from January 1, 2024. The hike applies to employees drawing pay under the Revised Scale of Pay, 2017.

The Public Enterprises Department issued an Office Memorandum outlining the conditions for the DA increase. The approval is subject to several stipulations:

1. Statutory audit for FY 2023-24 must be completed.
2. PSUs should not default on loans or statutory dues, such as Provident Fund and ESI.
3. The increase is only applicable to profit-making PSUs with adequate internal resources to cover the additional financial burden.
4. PSUs receiving budgetary grants or subsidies for administrative expenses are excluded from the hike.
5. A Memorandum of Understanding (MOU) with the Administrative Department for FY 2024-25 must be signed.
6. Independent Directors must be appointed as per corporate governance guidelines.

The PSUs that meet these criteria will submit proposals to their respective Administrative Departments with approval from their Board of Directors for final consideration. Non-categorized PSUs can also apply for the increase if they meet the specified conditions.