In a pre-poll Ugadi gift, the state government has hiked dearness allowance (DA) for its employees to 6.5% from the existing 3.75% of their basic pay.
The enhancement will come into retrospective effect from January 1, 2019, and will apply to full-time government employees, Zilla Panchayat staff, employees of aided educational institutions and universities, according to an order issued by the Finance Department on Thursday.
The hike is expected to benefit nearly six lakh government employees burdening the exchequer by about Rs 760 crore. It is paid by the government to offset the impact of inflation.
The same quantum of hike in DA has been given to pensioners.