New Delhi: The cabinet on wednesday hiked dearness allowance (DA) given to central government employees by five percent in what seems to be a move aimed at reviving consumer demand amid an economic slowdown. Dearness Allowance or DA is paid by the government to its employees as well as pensioners to offset the impact of inflation.
The announcement was made by Union Minister Prakash Javadekar after a cabinet meeting on Wednesday. The move will be effective from July 2019 and is a major relief for government employees who will now be entitled to an additional five per cent dearness allowance.
Addressing a press conference, Javadekar said the hike in DA will cost the government Rs 16,000 crore annually and that it is a Diwali gift to over 50 lakhs Central government employees and 62 lakh pensioners.