In May, Tamil Nadu CM Stalin announced a 4 per cent Dearness Allowance Hike provided to state government employees. As a result, DA hiked from 38 per cent to 42 per cent. An official release said that CM approved 4 per cent hike of DA taking effect at the commencement of the new financial year on April 1.
Earlier, the state said that sitting at 42 per cent DA would entail an additional expenditure of Rs 2,366.82 crore. However, the move was also aimed to benefit 16 lakh government employees.
Previously, the state government stated that it would implement a DA raise in tandem with any increase made by the Central government. Just last week, the Union Cabinet declared an identical 4 percent escalation in DA and DR for central government employees and pensioners, correspondingly.