'Diwali gift': Central government staff, pensioners get 5 per cent hike in dearness allowance

About 50 lakh employees and 65 lakh pensioners will benefit from the move. The hike will cost the government's exchequer around Rs 16,000 crore, said Union minister Prakash Javadekar. 

Published: 09th October 2019 02:54 PM  |   Last Updated: 09th October 2019 05:04 PM   |  A+A-

Union minister Prakash Javadekar

Union Minister Prakash Javedkar (Photo| Shekhar Yadav, EPS)

By Online Desk

After the Indian Banks' Association announced an extra month's salary as an early Diwali gift for all public sector bank employees, the Narendra Modi government has now announced a bonanza for central government employees and pensioners. 

The government announced a 5 per cent hike in Dearness Allowance (DA) to all central government employees from July 2019. About 50 lakh employees and 65 lakh pensioners will benefit from the move.  

"The Dearness Allowance will be raised from 12 to 17 per cent. The move will cost the government Rs 16,000 crore," said Union Minister Prakash Javedkar while briefing the media after a Union Cabinet meeting. 

Javadekar noted that previously DA had been raised by 2-3 per cent but this is the first time it has been raised by 5 per cent in one go.

"This is a Diwali gift to government employees," Javadekar said.

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