The Dearness Allowance of central government employees will be raised by five per cent, Union Minister Prakash Javadekar said today, calling it a "Diwali gift". Some 50 lakh government employees will benefit from the move.
The decision was approved at a cabinet meeting chaired by Prime Minister Narendra Modi this morning. The Dearness Allowance will be raised from 12 to 17 per cent, said the minister. The move will cost the government Rs. 16,000 crore rupees.
"This will bring cheer to the working class, the central government has been announcing steps for many sectors," Mr Javadekar said. The decision will cost the exchequer Rs. 16,000 crore, the minister said while briefing media on the decisions taken by the cabinet.
"This is the highest ever 5 percentage points increase in DA in one go by the central government," he said.
Around 65 lakh pensioners would also benefit, he added.
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