Government employees’ DA hiked by 5%

New Delhi: In a Diwali gift to Central government employees and pensions, the Modi government on Wednesday hiked the dearness allowance (DA) by 5%. The decision was approved in a cabinet meeting today.

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. It is one of the highest raise in last several years, the minister added.

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.”