The Rajasthan Government has announced 7 percent hike in the Dearness Allowance of the State Government employees and pensioners with effect from January 1, 2012. The prevailing D.A. which is 58 percent will be now 65 percent of the basic pay and it will be at par with the D.A. of the Central Government. The increased D.A. would be effective from January 1, 2012 and it would be paid in cash from April 1, 2012. The Arrears on account of the increased D.A. from January to March 2012 would be credited in the GPF accounts of the.D.A. hike would also be applicable for the work charge employees, employees of the Panchayat Samitis and Zila Parishads also.The state government has also increased the Dearness Relief (D.R.) for pensioners by 7 percent and it would be 65 percent of the basic pension from January 1, 2012. The increased D.R. would be paid to the pensioners and family pensioners in cash. Nearly 7 lakh employees and 3 lakh pensioners would be benefited by this decision of the state government. The hike in D.A. would cost the state exchequer Rs 875 crore additional annually.