The Union Cabinet on Friday decided to augment the dearness allowance by 4% for all central government employees and pentioners. The government stated that the new rates will become effective from 1st January, 2019.
Addressing the press about the Cabinet decision, Union Minister Prakash Javadekar stated, "The Cabinet has approved a four per cent hike in DA for 48 lakh government employees and 65 lakh pensioners."
Owing to the inflated dearness allowance, the government will incur an additional expense of Rs 14,595 crore, Javadekar said.
The 4% increase in DA is over the existing rate of 17% of the basic/pension.