The State Government has hiked the Dearness Allowance (DA) of government employees and pensioners by 7 per cent. With this, the total dearness allowance will increase to 80 per cent from the present 73 per cent of the basic pay.
Finance Minister K M Mani said that the new DA would have retrospective effect from July 2014.
He also stated that with the increase, the employees and pensioners in the state would get the same benefit as that of the Central Government employees and pensioners.
Mani said the increase in DA would incur an additional burden of Rs 96.18 crore a month on the government and an yearly burden of Rs 1,161.72 crore.
The increased DA would be disbursed from March 2015. However, the arrears of employees from July 2014 to March 2015 would be merged with the Provident Fund.
Source : The New Indian Express