Tamil Nadu government on Saturday hiked the Dearness Allowance for its employees by eight per cent, extending the benefits to pensioners also.

The revised DA amount will be paid from January 1, 2010.

It had been hiked following the increase in DA for Central government employees recently, an official release said.

A directive was issued in this regard by Chief Minister M Karunanidhi, the release said, adding this will cost the State exchequer an additional sum of Rs. 1,447.76 crore annually.