Rajasthan government hikes DA by 7 per cent

The Rajasthan government on Thursday hiked the dearness allowance (DA) of state employees by 7 per cent, benefiting nearly seven lakh employees and three lakh pensioners and costing Rs 875 crore additional burden to the exchequer.

The DA has been increased from 65 per cent to 72 per cent of the basic pay, effective from July. It will be at par with the DA of the central government employees, according to an official.

The Dearness Relief (DR) for pensioners has also been increased by 7 per cent to 72 per cent of the basic pension from July.

The DA hike would also be applicable to employees of Panchayat Samitis and Zila Parishads.

Arrears on account of the increased DA from July to September will be credited in GPF accounts of the employees, while hiked DA would be paid in cash from October 1, 2012, the official said.

The increased DR would be paid to the pensioners and family pensioners in cash.

Earlier this week, the Centre hiked DA by 7 per cent to 72 per cent for its employees and pensioners, effective July.