The Rajasthan government on Friday increased the dearness allowance for its employees to 17 per cent from the existing 12 per cent.
The revised allowance will be effective from July 1, 2019, according to an order of the finance department.
About 8 lakh employees and 4.40 lakh pensioners will be benefited from this increase.
The state government will incur an additional financial burden of about Rs 3,417 crore in 2020-21.
The amount of increase in dearness allowance (DA) for the period from July 1, 2019, to February 2, 2020, shall be credited to the general provident fund account of the employees in April 2020 and cash payment shall be admissible from March 1.
As per the order, the arrear of DA from July 1, 2019, to February 29, 2020, to the employees recruited to the civil services on or after January 1, 2004, and who are governed by the Contributory Pension Scheme shall be paid in April 2020 and cash payment shall be admissible from March 1, 2020.