The Rajasthan government on Friday announced a 2 per cent increase in dearness allowance for the state`s employees, which will benefit around 8 lakh employees and 3.5 lakh pensioners, an official said. According to him, the dearness allowance to employees and the dearness relief to pensioners will come into force with effect from January 1, 2018. Other state employees including those of Panchayat Samitis and District Councils, as well as their pensioners will also benefit from the increased 2 per cent dearness allowance.

While the increased dearness allowance for January and February will be deposited in the general provident fund accounts of the employees, cash payments will be made from March onwards. The state government will have additional financial burden of about Rs 957 crore on account of increased benefits for the employees in the current financial year.