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Cabinet approves 5% hike in dearness allowance; Diwali gift, says Prakash Javadekar
The 5 % hike in Dearness Allowance will benefit over 48 lakh Central Government employees and 62 lakh pensioners.
The Union Cabinet, led by Prime Minister Narendra Modi, has approved a 5 % hike in Dearness Allowance to Central Government employees, and Dearness Relief (DR) to pensioners with effect from July 2019 to compensate for price rise.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission (CPC).
This will benefit over 49.9 lakh Central Government employees and 65 lakh pensioners. This is a Diwali gift to employees, said Union Minister Prakash Javadekar. The nation will celebrate the festival of light on October 27.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 16,000 crore per annum and Rs 10,606 crore in the financial year 2019-20 (for a period of 08 months from July, 2019 to February, 2020).
Dear Allowance and Dearness Relief is paid to central government employees and pensioners respectively to adjust the cost of living and to protect their basic pay and pension from erosion in the real value. The two allowances are revised twice a year, with effect from 1 January and 1 July.
Watch | ‘Diwali gift’: 5% hike in dearness allowance for central govt employees
“The Cabinet under the chairmanship of Prime Minister Narendra Modi and in a major decision, it has increased dearness allowance of central government employees by 5%.... This is the highest in a way, 5% rise in one go. And more importantly, on the eve of Diwali,” Javadekar said.
“This will bring cheers to the working classes because the central government is achieving many milestones in many sectors and it is the contribution of central government employees, and therefore, this decision was taken,” he said.
Displaced people
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.’
Aadhaar seeding
The minister also announced 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
