Festival Gift to Central Govt Employees and pensioners

New Delhi Sept 13: The union cabinet under the chairmanship of Prime Minister Narendra Modi has taken some crucial decisions.

* The cabinet has approved the increase in additional 1 % Dearness Allowance (DA) to central government employees and Dearness Relief to pensioners.

* With the increase the total DA given stands at 5 %.

* Approximately 50 Lakh Central Government employees will be benefitted.

* Nearly 61 lakh pensioners will also be benefited.

* The new rates would be applicable from July 1

* The total expenditure outgone by the government is RS 3068.26 crores.

The cabinet has also approved amendments to the payment of gratuity bill.

* Under the bill the tax-free gratuity has been doubled to Rs 20 lakhs from Rs 10 lakhs. This would be made applicable to private employees and all central govt employees.

* Govt has said that this decision has been taken in accordance with the report submitted by the 7th pay commission report.

The govt has also said from now onwards the power to increase the gratuity and maternity leaves would be transferred to union cabinet so that Parliament time is not wasted and speedy decisions can be taken.