Law & Governance

Centre Raises DA Of Central Govt Employees As A ‘DiwaliGift’

BP World Bureau | Oct 09 2019 05:56:27 PM
Image credits: Twitter

NEW DELHI: The Centre has raised the Dearness Allowance of Central Government employees by 5% as a ‘Diwali Gift’. Announcing the increase in the DA, the Union Broadcast Minister Prakash Javadekar said that the government has many such plans for other sectors as well.

The cabinet meeting headed by Prime Minister Narendra Modi has decided to increase the DA that will cost the government an additional Rs 15,909.35 crore. The decision will benefit about 50 lakh government employees and more than 65 lakh pensioners, Javadekar said.

The DA rise from 12% to 17% that will come into effective from July is intended to compensate the price hike, added the Minister. 

Javadekar said that this move by the Centre would bring cheers to the working class ahead of Diwali, he added.

“This is for the first time the centre is increasing the DA to five percent in a single go,” he added.

Dearness Allowance has been providing for every government employee as compensation when the cost of living of the individual increase by price hike due to inflation in the market. It is a percentage of the employee’s full month salary.

The minister also said that the increase has given in accordance with the formula recommended by the 7th central Pay Commission.