Chennai, Sept 18: Tamil Nadu government Monday announced a two per cent hike in Dearness Allowance (DA) for its employees, which will incur an additional annual expenditure of Rs 1,157 crore.
Chief Minister K Palaniswami said the government's decision to increase the DA from seven per cent to nine per cent with effect from July 1, 2018, followed the Centre earlier approving an additional two per cent DA instalment for its employees.
Various sections of government employees and pensioners would benefit from the move, he said in a statement and expressed joy over announcing the revision.
The increase will be in the range of Rs 314 to Rs 4,500 for various government employees and Rs 157 to Rs 2,250 for pensioners and beneficiaries of family pension, he said. About 18 lakh persons will benefit from the move.
DA arrears will be paid for the period July-August 2018, while the revised amount will be paid along with the salary starting September, he said.
"Due to the DA hike, there will be an additional expense of approximately Rs 1157 crore for the government," he said.