In a bonanza for state government employees, the Rajasthan government today announced a 10 per cent hike in Dearness Allowance for them with effect from July one this year.
The DA would now be 45 per cent of the basic pay, an official spokesman said adding the decision would cost the state exchequer Rs 1250 crore.
Arrears till September would be deposited in Provident Fund accounts of the employees, he said.
From October, the hiked DA would be paid in cash, the spokesman said and added nearly seven lakh employees would be benefited by the decision.
The government also announced a 10 per cent DA hike for pensioners, the spokesman said.