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Diwali Gift: Cabinet hikes dearness allowance for govt employees by 5%

Newsroom Post-English 2019-10-09 14:52:28

New Delhi: In a Diwali gift to government employees, Union Minister Prakash Javadekar on October 9 announced that the Dearness Allowance(DA) of government employees will be raised by five percent. Some 50 lakh government employees will benefit from the move.


The move raises dearness allowance to 17 percent from 12 percent, and is likely to benefit 50 lakh government employees and 62 lakh pensioners.

The decision was approved at a cabinet meeting this morning. The move will cost the government Rs. 16,000 crore rupees.

Union Minister Prakash Javadekar: Under leadership of Prime Minister Modi, several decision have been taken and good news for govt employees is that Dearness Allowance has been hiked by 5%. pic.twitter.com/P08ZnEcDIC

— ANI (@ANI) October 9, 2019


Dearness allowance is a cost of living adjustment allowance paid to government employees, public sector employees and pensioners and is calculated as a percentage of basic salary to mitigate the impact of inflation.

“This is a Diwali gift to employees,” Javdekar said during a Cabinet briefing.