The enhanced DA would also be applicable to all state government employees including the work charged and contract employees, an official release from the Chief Minister's Office said here.

The hike in DA would come into force with retrospective effect from January 1 this year and the employees would avail the enhanced DA in their salary from April.

The decision would benefit four lakh government employees, the release said.

The state government employees who were getting 107 percent DA on their basic pay, would now go up to 113 percent with this hike, the release added.

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