Economy

Government Increases Dearness Allowance By 5% For Central Employees, Pensioners

The decision will cost the exchequer Rs 16,000 crore, as per Union minister Prakash Javadekar.

New Delhi: The government, on Wednesday, announced the highest ever 5% points increase in dearness allowance (DA) which will bring cheers to 50 lakh central employees and 65 lakh pensioners ahead of Diwali.

The Union Cabinet chaired by Prime Minister Narendra Modi approved the 5% additional DA/DR (dearness relief) over the existing rate of 12% of the basic pay/pension due in July, 2019, the government said.

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The decision will cost the exchequer Rs 16,000 crore, Information and Broadcasting Minister Prakash Javadekar said while briefing media on the decisions taken by the Cabinet.

“This is the highest ever 5% points increase in DA in one go by the central government,” he said adding this will bring cheers to the government employees on the eve of Diwali.

India celebrates Diwali on October 27.

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