Tamil Nadu Chief Minister MK Stalin on Tuesday, December 28, ordered a 14% increase in Dearness Allowance for government employees, teachers, pensioners and family pensioners with effect from January 1, 2022. Stalin also ordered a special Pongal gift of Rs 3,000 for C and D category employees, Rs 1,000 for those drawing salary in the special pay matrix as well as Rs 500 for pensioners, which includes those receiving special pension. Pongal festival falls on January 14, 2022.

The hike in DA from 17 to 31% would entail an additional expenditure of about Rs 8,724 crore and for festival cash gift approximately, Rs 169.56 crore, an official release here said. Despite the fiscal burden, the Chief Minister directed the DA raise and festival gift considering the welfare of all government employees, teachers and pensioners, the government said.

On September 7, 2021, Stalin had announced in the Assembly that enhanced Dearness Allowance to government employees and pensioners would be advanced by three months and it shall be implemented with effect from January 1, 2022.

However, the government had not specified then, the percentage of increase that was being contemplated. Employees had demanded and expected a raise of 11%. The present DA hike would benefit about 16 lakh government employees and pensioners.

Previously, in the revised budget (2021-22), the increase in DA for employees and pensioners was announced with effect from April 1, 2022, which was advanced subsequently by three months.