Ahead of Diwali, Cabinet hikes dearness allowance by 5%

New Delhi: The government on Wednesday announced the highest ever 5 percentage points increase in dearness allowance(DA) which will bring cheers to 50 lakh central employees and 65 lakh pensioners ahead of Diwali.

The Union Cabinet chaired by Prime Minister Narendra Modi approved the 5 per cent additional DA/DR (dearness relief) over the existing rate of 12 per cent of the basic pay/pension due in July, 2019, the government said.

The decision will cost the exchequer Rs 16,000 crore, Information and Broadcasting Minister Prakash Javadekar said while briefing media on the decisions taken by the Cabinet.

“This is the highest ever 5 percentage points increase in DA in one go by the central government,” he said adding this will bring cheers to the government employees on the eve of Diwali.

India celebrates the festival of light on October 27.