7th Pay Commission : Cabinet hikes DA to CG Employees and Pensioners by 1%

 7th Pay Commission :  Central govt employees to get additional 1% Dearness Allowances, Dearness Relief to pensioners, Cabinet says

Key Highlights

  • Central government employees will get an additional 1% DA while pensioners will get Dearness Relief.

  • This will be applicable to salaries from July 1.

  • This is expected to benefit 50 lakh Central government workers and 61 lakh pensioners.

Prime Minister’s reshuffled Cabinet has approved the release of 1 percent additional Dearness Allowance (DA) to employees of the Central Government and Dearness Relief (DR) to pensioners applicable from July 1, 2017.

The added DA will be an increase of 1 percent from the existing rate of 4 percent of the Basic Pay/Pension to compensate for the hike in prices and the higher standards of

Principal Director General of Press Information Bureau, Frank Noronha tweeted on Tuesday about the addition of DA and DR, which is likely to benefit 50 lakh Central government employees and 1 lakh pensioners in the country.

#CabinetDecision: release of additional 1% Dearness Allowance to Central Government employees and Dearness Relief to pensioners

Further, the Cabinet also gave approval to the Payment of Gratuity (Amendment) Bill 2017 to be introduced in the Parliament. The amendment seeks to revise the gratuity ceiling for private sector employees.

: Payment of Gratuity (Amendment) Bill, 2017 to be introduced; to revise gratuity ceiling for private sector employees

: Payment of Gratuity (Amendment) Bill, 2017 to be introduced; to revise gratuity ceiling for private sector employees

After the 7th Pay Commission was implemented, the tax-free gratuity ceiling for Central government employees has doubled from Rs 10 lakh to Rs 20 lakh.

The amended bill will also increase the maximum limit of gratuity for employees in the private sector and Public Sector Undertakings (PSUs)/Autonomous Organizations of the government who are not covered under the pension rules. The limit of the private sector employees will be at par with the government employees if the bill is passed.

Both these measures have been approved with the changing lifestyles, higher costs of living, inflation and wage increase in India.

Source : moneycontrol.com
Comments
Loading...