Cabinet approves 4% Dearness Allowance hike as Diwali gift for government employees
New Delhi, October 18: In what can be seen as a Diwali gift to central government employees and pensioners, the Union cabinet has reportedly given the green light to a 4 per cent increase in dearness allowance (DA). This decision was reached during a cabinet meeting held earlier today, marking the first DA hike since March 2023.
Additionally, the cabinet is said to have approved an increase in the minimum support price (MSP) for six rabi crops, including staples like wheat and red lentils (masur), with the raise potentially reaching up to 7 per cent, according to inside sources.
The official announcement regarding the 4 per cent DA hike is expected to follow the cabinet's meeting today. If implemented, this increase would bring the current DA rate of 42 per cent up to 46 per cent, providing a timely boost to central government employees and pensioners just weeks before the Diwali festival.
In March of this year, the Union Cabinet had already raised the dearness allowance and dearness relief by 4 per cent to reach the 42 per cent mark. This move benefitted approximately 47.58 lakh central government employees and 69.76 lakh pensioners. Anurag Thakur, the Minister of Information and Broadcasting, noted that this decision would have an annual financial impact of Rs 12,815.60 crore. The effective date of the increase was January 1, 2023.
Furthermore, it's worth mentioning that in September of the previous year, the Cabinet had also sanctioned a 4 per cent additional DA hike, closely aligned with the Diwali celebrations.
- With inputs from agencies
