Jaipur (Rajasthan): The Rajasthan government on Monday announced a 2 per cent hike in Dearness Allowance (DA) for the state employees. The allowance, which was 7 per cent, has now been increased to 9 per cent, news agency ANI reported. The 2 per cent DA hike will come into effect from July 1, 2018.

The increased amount for the period between July 1, 2018 and August 31, 2018 will be credited to the General Provident Fund Account of the respective employees and cash payment shall be admissible from September 1, 2018, according to a release.

The release also said that the arrear of the DA from July 1 to Aug 31 for the employees who were recruited on or after January 1, 2004, will be paid in cash.

The announcement has come a few days after the Union cabinet approved the release of an additional two per cent dearness allowance for 48 lakh central government employees and 62 lakh pensioners with retrospective effect from July 1. With this, the DA was hiked from seven to nine per cent.

The Cabinet had raised the DA from five to seven per cent last March. The increments have been as per the recommendations of the 7th Pay Commission.

“The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 6,112.20 crore per annum and Rs 4,074.80 crore in the financial year 2018-19,” the Finance Ministry said in a statement.

With agency inputs