There is some really good news for the government employees on the festival of Holi. Government has declared a 6% hike in DA, also known as the Dearness Allowance. The decision has come from the Union Cabinet on Wednesday. At the present, the DA allowance is 119%, and now it is said to be hiked to 125%. According to the official sources, this will benefit over 10 million personnel, which includes 4.8 million central government employees and 5.5 million pensioners.
The hike is expected to cost the exchequer an additional amount of Rs. 14,724.74 annually. This hike will be in effect from 1st January, 2016. This was told by the Telecom Minister Ravi Shankar Prasad after they took the decision in the Union Cabinet meeting.
The Union Cabinet has also approved the implementation of the rural housing scheme, ‘Pradhan Mantri Awaas Yojana’. Under this scheme, one crore houses will be built in the next three years. The scheme will cost Rs, 81,975 crore and Rs. 1.2 lakh of financial assistance will also be provided per unit in plain areas and Rs. 1.3 lakh in hilly and difficult areas.
Besides that, the government has also approved upon the Ashgabat Agreement. This agreement will help them in building an international transport and transit corridor between Central Asia and Persian Gulf. The government has also approved the procurement of the launch services and realization of the ground segment for GSAT-11.
Last year in the month of September, DA was increased to 119% from 113% and this was effective from the month of July. Also, in the month of April, last year, the government hiked DA by 6 percentage points to 113% of their basic pay. This was in effect from January 1, 2015. DA is basically paid as a portion of basic pay of employees to neutralize the impact of inflation. In case of pensioners, they get dearness relief.