A file photo of Prakash Javadekar
A file photo of Prakash Javadekar

Dearness allowance (DA) of government employees hiked by 5%

  • The government has increased the DA from 12% to 17%
  • The decision was approved in a cabinet meeting today

New Delhi: In a Diwali gift to Central government employees and pensioners, the Modi government on Wednesday hiked the dearness allowance (DA) by 5%. 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 5%, which means the dearness allowance has been increased from 12% to 17%.

"The government has increased the DA from 12 percent to 17 percent," Prakash Javadekar said.

Javadekar noted that previously DA had been raised by 2-3% but this time it has been raised by 5 per cent in one go.

"It is one of the highest raise in last several years," Javadekar said.

The move will benefit at least 50 lakh government employees and 65 lakh pensioners. The hike would be effective from July. The cost to the exchequer will be 16,000 crore.

This increase is based on the recommendations of the 7th Pay Commission.

Javadekar said "This is a gift for the employees ahead of Diwali."

The Sensex today surged nearly 650 points after six days of losses. "The 5% DA hike in puts more money in the hands of over one crore government employees and pensioners and pushed several heavyweight stocks higher in trade today," said S Ranganathan, head of research at LKP Securities.

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