Chief Minister J Jayalalithaa on Wednesday announced a seven per cent hike in Dearness Allowance (DA) for employees of the eight transport corporations with retrospective effect from January 1 this year. The hike will be paid in cash without any arrears.
The measure would cost the State exchequer an additional expenditure of `10.55 crore and would benefit 1,19,764 employees and 41,520 pensioners.
DA has been increased from 58 per cent to 65 per cent. The Chief Minister said the beneficiaries include all employees, including technical staff of the department. Pensioners and those getting family pension also stand to benefit. The CM expressed confidence that the hike would encourage employees to work more efficiently.
Last year, the CM announced a seven per cent hike in DA for transport employees on November 30 with retrospective effect from July 1, 2011. A month ago, the CM announced a slew of measures for the welfare of the transport corporation employees and to tone up the administration of these corporations.