Kerala Cabinet sanctioned an additional dearness allowance of 10 per cent to State government employees and pensioners on Wednesday. With this, the total dearness allowance will be 63 per cent of the basic pay.
Announcing this, Chief Minister Oommen Chandy said that the decision would have retrospective effect from July 2013. However, the salary would carry the increased rate of dearness allowance from January 2014. The arrears from July to December 2013 would be credited into the provident fund account of the employees.
Employees would get the new DA from July this year and the state exchequer would have an additional expenditure of Rs.130 crore per month on this account. The recommendation comes in the wake of a hike in the DA of central government employees. The cabinet has also decided to give the salary scale of secretariat staff to university employees.