Chief Minister M. Karunanidhi on Tuesday announced a five per cent hike of dearness allowance for employees of the State government, teachers and pensioners.
The hike would come into effect from July 1. This follows an increase in the DA announced for employees of the Central government.
An official release said the increased DA would be paid without any arrears. The move would entail an additional expenditure of Rs. 955 crore in a year and Rs. 637 crore this year.