In a statement here, Jayalalithaa said that with the Centre announcing seven per cent increase in DA, her government has decided to provide a similar hike in the basic pay of its employees and teachers.
This would cost the Exchequer Rs 1,443.50 crore annually, she said in the statement.
She extended the benefit to pensioners from the aforesaid categories also and said the hike would be paid in cash with retrospective effect from 1 July, 2012.
The move would benefit 18 lakh people and encourage the government staff to more effectively involve themselves in public service, she said.
The Chief Minister has consistently been ensuring that the government employees were being rewarded well.
A few months ago, Jayalalithaa hiked the health insurance cover and housing loan ceiling for the State government staff.
The insurance cover for the employees' families was hiked from Rs two lakh to Rs four lakh over the next four years and would also cover treatment and surgery for 113 approved ailments. The State government roped in United India Insurance Company for this.
And for those who plan to build their dream houses, the housing loan ceiling was raised from Rs 15 lakh to Rs 25 lakh, in tune with the rising cost of construction. Civil services officers would, however, be eligible to avail themselves of a housing loan of Rs 40 lakh from the present Rs 25 lakh.
In June this year, Jayalalithaa announced a seven per cent hike in dearness allowance for transport employees, with effect from 1 January this year.
She made the announcement of increasing their DA from 58 to 65 per cent to benefit 1,19,764 employees of eight government transport corporations in the State. The move also helped 41,520 pensioners and family pensioners
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