The Punjab government on Wednesday announced a 4 per cent hike in the dearness allowance for the state government employees and pensioners.

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"In a Diwali bonanza to families of more than 6.50 lakh employees and pensioners of the state government, Punjab Chief Minister Bhagwant Mann, on Wednesday, announced a hike of 4 per cent in their dearness allowance," an official statement said here.

Mann granted approval to give 4 per cent Dearness Allowance (DA) to the employees and pensioners, with effect from November 1, thereby enhancing it to 42 per cent from 38 per cent, the statement quoted a spokesperson of the Chief Minister's Office as saying.

Meanwhile, the chief minister said this decision will benefit more than 6.50 lakh employees, pensioners and their families.

The employees are a critical segment of the state administration and safeguarding their interests and ensuring their welfare was the government's top priority, he added.