New Delhi: The Union Cabinet on Wednesday announced a hike of a 5 percent in dearness allowance (DA) for the central government employees and pensioners ahead of Diwali festivities. Calling it as a "Diwali gift", Union Minister Prakash Javadekar today announced a rise in Dearness Allowance from 12 to 17 percent. The minister said the move is likely to benefit nearly 50 lakh crore government employees and 62 lakh pensioners.

The decision was taken during a meeting of the Union Cabinet, which was chaired by the Prime Minister. "Under leadership of Prime Minister Modi, several decision have been taken and good news for govt employees is that Dearness Allowance has been hiked by 5%," Javadekar said. "This will bring cheer to the working class, the central government has been announcing steps for many sectors," he added.

Watch | Great News: Dearness allowance increased by 5 percent



Dearness Allowance is a component of salary paid to employees to counter the effect of inflation. The announcement is likely to bring a smile on the face of millions of central government employees, who were left disappointed by Finance Minister Nirmala Sitharaman's maiden Budget.