Home / News / India /  DA (dearness allowance) of government employees hiked by 4%

The government today hiked the dearness allowance (DA) by 4%. The decision was approved in a cabinet meet chaired by Prime Minister Narendra Modi.

Union minister Prakash Javadekar said that the government has hiked DA by 4%, which means the dearness allowance has been increased from 17% of basic pay/pension to 21% of basic pay/pension for central government employees and pensioners.

The move will benefit at least 50 lakh government employees and 65 lakh pensioners. The hike would be effective from January 1. The cost to the exchequer will be 14,500 crore.

The Union Cabinet today approved a reconstruction plan for cash-strapped Yes Bank, under which the State Bank of India will pick up 49% of the equity, while private investors will be allowed to buy the rest.

According to Finance Minister Nirmala Sitharaman, the Cabinet decided that the SBI will hold at least 26% stake in the private bank for a minimum period of three years. The authorised share capital of the Yes Bank will be revised upwards from 1,100 crore to 6,200 crore.

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