The hike in Dearness Allowance (DA) for government employees and pensioners in Tamil Nadu would be advanced by three months and it shall be implemented with effect from January 1, 2022, Chief Minister M K Stalin announced in the state assembly on Tuesday.
In the revised budget (2021-22), the increase in DA for employees and pensioners was announced from April 1, 2022, CM Stalin said.
However, considering representations received from associations of government employees, the DA hike would be implemented for them and pensioners from January 1, 2022 despite serious fiscal constraints, the chief minister said.
The move would benefit 16 lakh government employees and pensioners and the advancement of the DA hike would entail an additional expenditure of Rs 1,620 crore for three months and for a year the expenditure shall be Rs 6,480 crore.
An office-bearer of a government employees association said that the DA is expected to be raised on par with the Centre's announcement of 11 per cent in sync with the practice so far.
"Usually, the state government announces the DA hike soon after the Centre's announcement. This is the first time we are witnessing such a scenario," he told PTI.
The associations of government employees have been demanding an 11 per cent DA increase.
Effective July 1, 2021, the Centre had announced an 11 per cent increase (17 per cent to 28 per cent) in DA and Dearness Relief to Central Government employees and pensioners respectively.
(With PTI Inputs)