Chennai, January 1: The Dearness Allowance (DA) for government employees including teachers, pensioners and family pensioners would be increased from 34 per cent to 38 per cent with immediate effect, Chief Minister M K Stalin said here on Sunday.

The increase, effective January 1, 2023, would benefit about 16 lakh staff and the decision was taken after considering the representation of government employees, he said. 7th Pay Commission: Big Update on DA Hike For Central Government Employees, Here’s How Much Increment is Expected.

Though the move would entail an additional annual expenditure of Rs 2,359 crore, the government has taken up the financial burden considering the welfare of state employees.

On the protest of government teachers seeking 'equal pay for equal work', he said a committee of three top officials, headed by Finance Secretary-Expenditure, would be set up. The government has decided to take steps based on the recommendations of the panel, he said. 7th Pay Commission: Centre Likely to Raise Fitment Factor Soon, Know How Much Salary Will Increase.

Terming the DA hike a 'New Year gift,' he appealed to the staff to cooperate with the government in its efforts aimed at people's welfare and prosperity.