Toeing the lines of the Central Government announced seven per cent hike in Dearness allowance for Central Government employees, Tamil Nadu Government has decided to hike Dearness allowance for its employees also by 7% with effect from 1.7.2011. The additional enhanced payment of the Dearness allowance will be paid in cash to all regular employees immediately with back date from 1.7.2011. The existing rate of Dearness allowance is now 51%, the revised rate of Dearness allowance will become 58% with effect from 1.7.2011. The calculation of Dearness allowance, Pay in the pay band plus Grade pay with multiple of 58%.
The government of Tamil Nadu has further decided that this hike in allowance will also apply to the Teaching and non-teaching staff of government-aided Educational Institutions, Employees of Local bodies, Employees governed by the University Grants Commission / All India Council for Technical Education scales of pay, the Teachers in government and aided Polytechnics and special institutions, Village assistants, Noon meal organisers, Child welfare organisers, Anganwadi workers, Cooks, Helpers and Assistants, among others.