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Govt increases dearness allowance by 5% for central govt employees, pensioners; move to cost exchequer Rs 16,000 cr

The government on Wednesday announced the highest ever 5 percentage points increase in dearness allowance (DA) which will bring cheers to 50 lakh central employees and 65 lakh pensioners ahead of Diwali. The Union Cabinet chaired by Prime Minister Narendra Modi approved the 5 percent additional DA/DR (dearness relief) over the existing rate of 12 percent of the basic pay/pension due in July, 2019, the government said.
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