Union Cabinet headed by Prime Minister Narendra Modi on Thursday approved increasing dearness allowance for central government employees to 21 per cent of basic pay/pension from 17 per cent of basic pay/pension with effect from January 1, 2020, Union Minister Prakash Javadekar told reporters in New Delhi.
The move is likely to benefit 48 lakh employees and 65 lakh pensioners, Mr Javadekar said. The move will be beneficial for 1.13 crore families, he said.
The hike in dearness allowance will cost the government additional Rs 14,595 crore, he added.
Prime Minister Modi’s government had implemented Seventh Pay Commission in January 2016, the salaries were then hiked and now with increase in dearness allowance the move is likely to benefit employees, Mr Javadekar said.