The Maharashtra government on Thursday decided to hike the Dearness Allowance (DA) of state government employees by six per cent with effect from January 1, 2015.
The DA is now 113 per cent from the existing 107 per cent. DA is calculated on total of basic pay and grade pay.
Finance Minister Sudhir Mungantiwar said the arrears would be given from October 1, 2015. Separate orders would be issued for payment of arrears from January 1, 2015 to September 30, 2015.
He said the decision was government's Diwali gift to the employees. The decision will benefit 18 lakh officials and employees as well as 6.5 lakh pensioners.