Kerala Cabinet sanctioned an additional dearness allowance of ten per cent to State government employees and pensioners on Wednesday. With this, the total dearness allowance will be 63 per cent of the basic pay.

Announcing this, Chief Minister Oommen Chandy said that the decision would have retrospective effect from July 2013. However, the salary would carry the increased rate of dearness allowance from January 2014. The arrears from July to December 2013 would be credited into the provident fund account of the employees.

The Chief Minister said that the outgo from the exchequer on payment of the additional dearness allowance would be about Rs. 130 crore a month.