The hike was being implemented with retrospective effect from January 1, 2015 and will apply to employees in local administration, teaching and non-teaching staff in government aided educational institutions, village assistants, anganwadi workers and others, an official release said.

The DA increase will result in a hike of Rs 366-4620 in the monthly wages of government employees and a total of 18 lakh staff and pensioners will benefit, it said.

"Due to the increase in DA, the government will incur an additional expenditure of Rs 1222.76 crore annually," it added.

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