Punjab?s finance minister, Manpreet Badal has announced to enhance the rate of dearness allowance (DA) payable to the state government employees from 27% to 35% applicable from January 1, 2010 on the pattern of Central Government Employees.

Badal said that the grant of 8% DA would put additional liability of Rs 713.89 crore on the state exchequer for the current financial year. The minister also said that the decision would also benefit the pensioners and they would be paid 8% ADA.

Adding further he said that the arrears of the DA till May 31 2010 would be deposited in the GPF of the employees and would be paid in cash from June 1, 2010.