Dearness Allowance for Central Government Employees Increased by 5%, Govt Calls it 'Diwali Gift'

New Delhi, October 9, 2019:

Information and Broadcasting Minister Prakash Javadekar said that five percent Dearness Allowance has been approved by the Cabinet as ‘Diwali gift’ for central government employees and Dearness Relief (DR) for pensioners.

The five percent increase in DA and DR for is aimed to aid more than 48 lakh central government employees and as many as 65 lakh pensioners.

It may be mentioned here that the Diwali gift has been approved on the basis of the 7th Central Pay Commission (CPC).

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Javadekar said that the 5 percent hike is the highest increase in DA for the central government employees, especially on the eve of Diwali. He added that the hike would bring joy to the working people.

Dear Allowance and Dearness Relief are paid to central govt. officials, both working and retired, in order to adjust the cost of living and protect their basic pay and pension from erosion in the real value. The two central govt. allowances are revised twice a year.

It is to be mentioned here that the DA and DR as Diwali gift would impact the exchequer an amount of of Rs. 16,000 Crore per annum and Rs 10,606 Crore in FY 2019-20, for a period of eight months, starting from July, 2019 to February, 2020.

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Additionally, the Union Cabinet also gave a nod to Rs. 5.5 lakh each for 5,300 displaced families who had settled in regions other than Jammu & Kashmir but later arrived in the then state.

Javadekar further declared a relaxation for the compulsory requirement of Aadhaar seeding for release of benefits under the Pradhan Mantri Kisan Samman Nidhi after August 1, 2019. The relaxation is till November 30.

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