Dearness allowance hiked to 5 per cent from 4 per cent

Mumbai: The Union Cabinet headed by Prime Minister Narendra Modi on Tuesday evening cleared some important proposals, among them was increasing dearness allowance of the central government employees by additional 1 per cent.

After the decision, central government staff will now get a dearness allowance at 5 per cent in proportion to their basic salary. Besides, another 1 per cent hike was also doled out to central government pensioners who will now get an increased monthly lump sum amount as part of their pension installments.

"Cabinet approves release of additional 1 per cent Dearness Allowance to Central Govt employees & Dearness Relief to pensioners w.e.f. 01.07.2017," news agency ANI said in a tweet.

A proposal related to an amended gratuity bill that is to be tabled in Parliament was also given the green signal. Cabinet approves introduction of Payment of Gratuity (Amendment) Bill, 2017 in Parliament. Once passed by the Parliament,  the amendment will revise gratuity ceiling for private sector employees.

Among the most important proposals was related to implementation of a scheme that aims to set up a Dairy Processing and Infrastructure Development Fund. Besides, approval concerning development of six-laning of Narasannapeta-Ranastalam section of national highway (NH) 16 in Andhra Pradesh was also given at Tuesday's meet.

Meanwhile, CBI arrested an Enforcement Officer attached to Employees Provident Fund organization at Regional Office in Kolkata for accepting Rs 20,000 bribe, ANI tweeted.