The Union Cabinet has approved the release of additional installment of one percent Dearness Allowance to Central Government employees and Dearness Relief to pensioners. A decision in this regard was taken during Cabinet meeting in New Delhi on Tuesday. It will be effective from 1st of July this year and benefit around 50 lakh Central government employees and 61 lakh pensioners.
The Cabinet also approved the Payment of Gratuity (Amendment) Bill- 2017 to revise gratuity ceiling for private sector employees. With the implementation of the 7th Pay Commission, the gratuity ceilings of Central government employees got revised from ten lakh to 20 lakh rupees. The amendment seeks to revise the ceilings of employees of private sector considering inflation and wages increase. It will apply to private sector and Public Sector Undertakings, Autonomous Organizations not covered under CCS (Pension) Rules.