The State government has enhanced dearness allowance (DA) for State government employees and pensioners by 3.2 per cent following a DA hike to Central government employees.
With the latest increase approved by Finance Minister Yanamala Ramakrishnudu, the DA rate went up from 8.9 per cent to 12.01 per cent according to the neutralisation formula.
The latest DA hike will be effective from January 1, 2015, and the DA arrears till October, 2015 will be credited to the GPF accounts and monetary benefit will be given from October salary paid in November.
The annual burden on the State following the DA hike will be Rs. 1,010 crore.
