Bengaluru: The Congress-JD(S) coalition government in Karnataka will increase Dearness Allowance (DA) to all government employees by 1.75 percent.

The proposal has been approved by Chief Minister H.D. Kumaraswamy who also holds the Finance portfolio.

The Chief Minister, who had called a pre-budget meeting in Bengaluru yesterday, approved the DA hike with retrospective effect from  January 1, 2018.

This means, the over six lakh government employees will get arrears of over five months if the DA proposal is  implemented.

The State Government Employees Association had demanded a 4.25 percent hike.

The DA hike was proposed by the Sixth Pay Commission and the hike will be doled out as a cash component along with the salaries of employees. The State Government’s move comes after the Centre announcing 2 percent DA hike.

All government employees, full-time employees of Panchayats, aided-educational institutions and pensioners are eligible for the hike. Government sources said that the hike will cost the State exchequer Rs. 550 crore.