Rajasthan Government hiked the dearness allowance (DA) of state employees by 7 percent, 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 100 percent to 107 per cent of the basic pay, effective from 1st July, 2014. It will be at par with the DA of the central government employees, according as per press release by state government.
The Dearness Relief (DR) for pensioners has also been increased by 7 per cent to 107 % of the basic pension from July, 2014. The Arrears on account of the increased D.A. from 1st July to 30th August, 2014 would be credited in the GPF accounts of the employees while hiked D.A. would be paid in cash from September 2014.