The Tripura government has cleared a proposal for a 5 percent hike in Dearness Allowance (DA) for state government employees and pensioners with effect from July 1, said Information and Cultural Affairs Minister Sushanta Chowdhury.

The decision came ahead of the assembly election in the state due in March next year. "The council of ministers has approved a proposal for providing 5 per cent DA to its employees despite resource constraints. The government will have to bear an additional annual burden of Rs 523.80 crore," he told reporters on Tuesday night.

A total of 1,88,494 people, including 1,04,683 regular employees and 80,855 pensioners, will be benefited. With this decision, the DA of state government employees has risen from three per cent of their basic pay to eight per cent.

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But the central government employees are receiving 34 per cent of basic pay as DA and the gap between the central and state government employees remains at 26 per cent, a PTI report said.

Tripura Government Employees' Federation (TGEF) welcomed the decision. "We welcome the decision of the government to hike DA by 5 per cent but the gap with the central government employees is still too high. We hope the state government will reduce it," TGEF secretary general Samar Roy told PTI.

Chowdhury also said that 200 engineers would be recruited in the Public Works Department through Tripura Public Service Commission. Engineering students passing out from Civil, Mechanical and Electrical disciplines will be eligible, he said. Altogether 100 staff nurses, 22 pharmacists and 39 laboratory assistants will also be recruited in the Health Department shortly, the minister added.