Government raises Dearness allowance by 5%, says, it is the highest hike ever

The government on Wednesday, announced the highest ever 5 percentage 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 per cent additional DA/DR (dearness relief) over the existing rate of 12 per cent of the basic pay/pension due on 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.

“The government has increased the DA from 12 percent to 17 percent. This is the highest ever 5 percentage 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 the festival of light on October 27.

In another announcement, Javadekar also said that the government has decided to double the remuneration of Asha workers from Rs 1,000 to Rs 2,000.

He also said Cabinet has decided to relax till November 30, the mandatory requirement of Aadhaar seeding for release of benefits under Pradhan Mantri Kisan Samman Nidhi after August 1.

Inputs from Agencies