Diwali Gift: Cabinet Clears 5% DA Hike, Govt Employees To Get 17% Dearness Allowance

In Diwali gift for lakhs of Central government employees, the Modi government on Wednesday increased the Dearness Allowance (DA) by 5 per cent. About 50 lakh government employees will now get 17 per cent DA, instead of 12 per cent as earlier. The decision will also benefit more than 62 lakh pensioners across the country. Union Minister Prakash Javadekar on Wednesday called government's decision to increase the Dearness Allowance by 5 per cent "Diwali gift".

There are 1.1 crore employees and pensioners in the central government. After the 5 per cent hike in DA, the salary of these employees under the 7th Pay Commission pay scale will increase from Rs 900 to as much as Rs 12500 per month. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission (CPC).

ALSO READ: Maruti, Tata, Mahindra Slash Production As Festive Offers Fail To Bring Cheer To Auto Sector

Dearness Allowance (DA) is a component of salary paid to government employees. DA is a cost of living adjustment allowance paid to government employees and pensioners linked to the Consumer Price Index to offset the impact of inflation. The rise in DA means that monthly take-home of all these employees and pensioners is bund to rise.

In another important decision, the Cabinet okayed a payout of Rs 5.5 lakh each for 5300 displaced families who had settled in regions others than J&K but later came to the then state. Javadekar called this move ‘a historical wrong being corrected.’

ALSO READ: Pakistan's Imran Khan Govt Breaks All Records In Borrowing Money

Cabinet has also cleared a relaxation till 30th November 2019 for the mandatory requirement of Aadhaar seeding for release of benefits under Pradhan Mantri Kisan Samman Nidhi after 1st August, 2019. The date has been extended to help farmers ahead of rabi (winter) sowing, he said. The minister said over 7 crore farmers have already benefited under the PM-Kisan scheme, under which Rs 6,000 is being provided to each farmer in three equal installments.