It’s good news for all the government employees; the announcement by the central government made on Wednesday targets pensioners and government employees and approved a hike of 5% on DA- dearness allowance. The decision was approved in a Cabinet meeting chaired by Prime Minister Narendra Modi.
The 5% hike in DA means it has been increased from 12% to 17%. He said, “The government has increased the DA from 12 percent to 17 percent,” Prakash Javadekar said.
Javadekar remarked that previously DA had been raised by 2-3%, but this time it has been raised by 5 percent in one go.
“It is one of the highest raise in the last several years,” Javadekar said.
The decision will benefit at least 50 lakh government employees and 65 lakh pensioners. The hike would be effective from July 2020. The cost to the treasury will be ₹16,000 crore.
This increase is based on the advice of the 7th Pay Commission.
Javadekar further added, “This is a gift for the employees ahead of Diwali.”
The Sensex today climbed nearly 650 points after 6 days of losses. “The 5% DA hike inputs more money in the hands of over one crore government employees and pensioners and pushed several heavyweight stocks higher in trade today,” said S Ranganathan, head of research at LKP Securities.