The Dearness Allowance (DA) for government employees including teachers, pensioners, and family pensioners would be increased from 34 per cent to 38 per cent with immediate effect, Chief Minister M K Stalin said on Sunday.
The increase, effective January 1, 2023, would benefit about 16 lakh staff and the decision was taken after considering the representation of government employees, he said.
Though the move would entail an additional annual expenditure of Rs 2,359 crore, the government has taken up the financial burden considering the welfare of state employees.
On the protest of government teachers seeking 'equal pay for equal work', he said a committee of three top officials, headed by Finance Secretary-Expenditure, would be set up. The government has decided to take steps based on the recommendations of the panel, he said.
Terming the DA hike a 'New Year gift,' he appealed to the staff to cooperate with the government in its efforts aimed at people's welfare and prosperity.