3rd DA hike for govt staff within a year

CHENNAI: The State government on Tuesday put more money in the pockets of its 12 lakh employees by announcing the third hike in dearness allowance (DA) within just 11 months. Taking its

CHENNAI: The State government on Tuesday put more money in the pockets of its 12 lakh employees by announcing the third hike in dearness allowance (DA) within just 11 months.

Taking its cue from the Centre, Chief Minister M Karunanidhi announced a five per cent hike in DA for government employees, teachers and pensioners, with retrospective effect from July 1, 2009.

The DA hike would be paid in cash. The measure would cost the State government an additional expenditure of Rs 955 crore per year. In the current year, the additional expenditure would be Rs 637 crore.

This would translate into a salary hike of between Rs 350 and Rs 3,000, according to trade union sources.

The State government first announced a seven per cent hike in DA on November 13, 2008. The measure had resulted in an additional expenditure of Rs 953 crore per year. Three mon­ths later, on February 26, 2009, the government announced a further six per cent hike in DA.