Kerala government employees, teachers and pensioners will get an enhanced dearness allowance of 12% from this month.
The decision to enhance the DA by 3% was taken by the government on Wednesday, a release from the finance minister’s office said.
The new DA will be given in the January salary and will have retrospective effect from July 2016, the release said.
For the employees the arrears will be merged with Provident Fund, while pensioners will get the arrears in cash.
he enhanced DA will cause a monthly burden of Rs 86.07 crore and yearly burden of Rs 1032.84 crore to the state exchequer.