Chandigarh: The Haryana government on Tuesday announced a 2% increase in dearness allowance (DA) of its employees, effective retrospectively from 1 January 2018.

The state government thus raised the DA on the pattern of the Centre from the existing 5% to 7%.

Making the announcement in Chandigarh, Haryana finance minister Abhimanyu said this enhancement would entail an additional financial burden of about Rs309.54 crore on the state exchequer for 14 months from January 2018 to February 2019 in the financial year 2018-19.

He said the government has also decided that the rate of DA admissible to employees, who continue to draw their pay in the pre-revised pay band or grade as per the 6th Pay Commission, would also be enhanced from the existing rate of 139% to 142% of the pay, with effect from 1 January 2018.