Good News For Govt Employees, Dearness Allowance Raised to 17%

The move is expected to benefit 50 lakh central govt employees and 65 lakh pensioners.

Prakash Javadekar.

(Photo: PTI)

The government on Wednesday, 9 October, announced the highest ever 5 percentage points increase in dearness allowance(DA) which will bring cheer to 50 lakh central employees and 65 lakh pensioners ahead of Diwali.

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

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 percentage points increase in DA in one go by the central government," he said.

India celebrates the festival of light on 27 October.