The Tamil Nadu Government today proposed a seven per cent hike in dearness allowance (DA) for its employees, in line with a recent Central Government proposal.
Chief Minister J. Jayalalithaa said with the Centre announcing a seven per cent increase in DA, her Government has decided to provide a similar hike in the basic pay of its employees and teachers.
The additional expenditure would be Rs 1,443.50 crore annually on the exchequer, she said in a statement here.
She extended the benefit to pensioners from the aforesaid categories also and said the hike will be paid in cash with retrospective effect from July 1, 2012.
The move will benefit 18 lakh persons and encourage the Government staff to more effectively involve themselves in public service, she said.