Union Cabinet Approves 4 Per Cent Hike In Dearness Allowance, To Benefit 48 Lakh Central Government Employees

In a move that will benefit around 48 lakh central government employees and 65 lakh pensioners, the Union Cabinet on Friday (13 March) approved four per cent hike in the dearness allowance, reports Hindustan Times.

“Cabinet has approved 4 per cent hike in dearness allowance (DA) for central government employees and Dearness Relief (DR) to pensioners with effect from 01.01.2020. This is over the existing rate of 17 percent of the Basic Pay/Pension,” Union Minister Prakash Javadekar said at a press briefing.

Javadekar further informed that the government will incur Rs 14,595 crore additional expense on account of this hike.

The hike in DA from 17 per cent to 21 per cent will benefit 1.13 crore families, the minister added.

Informing about the other proposals approved by the Cabinet, Javadekar said, “The Cabinet has approved building 780-km ‘green’ National Highway project at a cost of Rs 7,660 crore.”

The project pertains to rehabilitation and upgradation of various national highways covering a total length of over 780 kilometre in four states - Himachal Pradesh, Rajasthan, Uttar Pradesh and Andhra Pradesh.