5% Hike in Dearness Allowance of Government Employees as Diwali Gift
Calling it a “Diwali gift”, Union Minister said today dearness allowance of central government employees will be increased by 5%.
The move will benefit nearly 50 lakh government employees.
Union Minister Prakash Javadekar said the DA will be raised to 17% from 15%, based on the recommendations of the 7th Pay Commission.
Prime Minister Narendra Modi-led cabinet meeting this morning approved the decision.
The government’s expenditure will increase about ₹16,000 crore due to this move.
“This will bring cheer to the working class, the central government has been announcing steps for many sectors,” Mr Javadekar said.
While briefing the media on the cabinet’s decision, the minister said that the decision will cost the exchequer Rs. 16,000 crore.
“This is the highest ever 5% points increase in DA in one go by the central government,” Javadekar said.
Javadekar further said that around 65 lakh pensioners would also benefit from the move.Moreover, Javadekar said, “This is a gift for the employees ahead of Diwali.”
Dearness Allowance is a part of the salary paid to employees to mitigate the effect of inflation.