Tamil Nadu government today hiked the Dearness Allowance (DA) for its employees by 8%, extending the benefits to pensioners also.

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The revised DA amount will be paid from January 1, 2010.

It had been hiked following the increase in DA for central government employees recently, an official release said.

A directive was issued in this regard by chief minister M Karunanidhi, the release said, adding this will cost the state exchequer an additional sum of Rs1,447.76 crore annually.