Kerala government today decided to hike the Dearness Allowance by two per cent for its employees and pensioners, Finance Minister T M Thomas Isaac said here. The increase would come into effect from January last and with this DA would become 14 per cent, Isaac said.
Additional expense due to DA hike for the government was estimated to be Rs 59.14 crore per month and it would be Rs 709.68 crore annually, Isaac pointed out.
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For employees, the DA arrears from January 1 to March 31 would be merged into the Provident Fund account while pensioners would be given DA arrears in cash.