The Union Cabinet has approved a 3&nbsp;per cent&nbsp;increase in Dearness Allowance (DA), raising it from 50&nbsp;per cent to 53 per cent of basic pay. This decision was announced on Wednesday by Information and Broadcasting Minister Ashwini Vaishnaw.

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<h2>Effective date and impact</h2>

The DA hike will take effect from July 1, 2024.&nbsp;This increase is expected to provide significant relief to around 11.5 million (1.15 crore) central government employees and pensioners facing the pressures of rising living costs.

In a related move, Chhattisgarh Chief Minister Vishnu Dev Sai announced a 4&nbsp;per cent&nbsp;hike in Dearness Allowance for state government employees, increasing it to 50&nbsp;per cent&nbsp;of their basic salary, effective October 1, 2024.

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<h2>Understanding dearness allowance</h2>

Dearness Allowance is a financial benefit provided to government employees to help offset the effects of inflation. It is calculated as a percentage of the employee's basic salary and is revised every six months based on the All India Consumer Price Index (AICPI), which tracks retail price changes.

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This latest hike follows a 4 per cent increase in March 2024, which had previously raised DA to 50&nbsp;per cent&nbsp;

The Seventh Pay Commission states that when DA hits 50&nbsp;per cent&nbsp;or more, certain allowances, including house rent allowance (HRA), must be revised. This took place earlier this year.&nbsp;

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This ongoing commitment to revising allowances aims to ensure that government employees receive adequate compensation in light of inflationary pressures.

(With inputs from agencies)

The Union Cabinet has approved a 3 per cent increase in Dearness Allowance (DA), raising it from 50 per cent to 53 per cent of basic pay. This decision was announced on Wednesday by Information and Broadcasting Minister Ashwini Vaishnaw.

The Union Cabinet has approved a 3 per cent increase in Dearness Allowance (DA), raising it from 50 per cent to 53 per cent of basic pay. This decision was announced on Wednesday by Information and Broadcasting Minister Ashwini Vaishnaw. Also read | Samsung India workers call off strike after thirty-eight days Effective date and impact The DA hike will take effect from July 1, 2024. This increase is expected to provide significant relief to around 11.5 million (1.15 crore) central government employees and pensioners facing the pressures of rising living costs. In a related move, Chhattisgarh Chief Minister Vishnu Dev Sai announced a 4 per cent hike in Dearness Allowance for state government employees, increasing it to 50 per cent of their basic salary, effective October 1, 2024. Also read | German envoy performs Indian rituals after buying new EV; ties 'lemon and chill', smashes coconut Understanding dearness allowance Dearness Allowance is a financial benefit provided to government employees to help offset the effects of inflation. It is calculated as a percentage of the employee's basic salary and is revised every six months based on the All India Consumer Price Index (AICPI), which tracks retail price changes. Also read | ‘Complete defiance,’ SC scolds Punjab and Haryana over rising cases of stubble burning This latest hike follows a 4 per cent increase in March 2024, which had previously raised DA to 50 per cent The Seventh Pay Commission states that when DA hits 50 per cent or more, certain allowances, including house rent allowance (HRA), must be revised. This took place earlier this year. Also read | SCO roundup: India opposes China's OBOR, Jaishankar schools Pakistan, and more This ongoing commitment to revising allowances aims to ensure that government employees receive adequate compensation in light of inflationary pressures. (With inputs from agencies)

Diwali bonanza: Govt announces 3 per cent hike in DA for central govt employees

The Union Cabinet led by Prime Minister Narendra Modi announced a Unified Pension Scheme (UPS) on Saturday (Aug 24), which aims to increase the retirement benefits for 23 lakh central government employees.

The UPS has certain elements of both the Old Pension Scheme (OPS) and the current National Pension Scheme (NPS) that will benefit the employees. The scheme will be effective from April 1, 2025, and will include assured pensions, family pensions, and minimum pensions to provide financial security for government workers after retirement.

Central government employees will be given the option to choose between UPS and NPS. Employees who are already NPS subscribers will be given an option to switch to UPS.

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<h2>Key features of the Unified Pension Scheme</h2>

Assured pension

Employees who subscribe to the UPS with at least 25 years of service will get an assured pension of 50% of their average basic pay over the last 12 months before retirement. Other employees having a minimum of 10 years of service will be eligible for a pension proportionate to their tenure.

Assured family pension

UPS provides an assured family pension after their demise, according to which the employee's spouse will be given 60% of the pension drawn before their death.

Assured minimum pension

Employees who retire before completing 25 years of their service will be assured a minimum pension of&nbsp; Rs 10,000 monthly after retirement with a minimum of 10 years of service.

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Inflation indexation

For the subscribers of UPS, the assured pension, family pension and minimum pension will be indexed to inflation.

Dearness Relief

Both serving and retired employees under the UPS will get Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).&nbsp;

Lump sum payment on superannuation

Apart from the assured pension, subscribers of UPS will also receive a lump sum payment on superannuation along with gratuity. This payment will amount to 1/10th of the employee's monthly emoluments, which includes pay and Dearness Allowance, as of the date of retirement for every completed six months of service.&nbsp;

(With inputs from agencies)

The Union Cabinet led by Prime Minister Narendra Modi announced a Unified Pension Scheme (UPS) on Saturday (Aug 24), which aims to increase the retirement benefits for 23 lakh central government employees.

The Union Cabinet led by Prime Minister Narendra Modi announced a Unified Pension Scheme (UPS) on Saturday (Aug 24), which aims to increase the retirement benefits for 23 lakh central government employees. The UPS has certain elements of both the Old Pension Scheme (OPS) and the current National Pension Scheme (NPS) that will benefit the employees. The scheme will be effective from April 1, 2025, and will include assured pensions, family pensions, and minimum pensions to provide financial security for government workers after retirement. Central government employees will be given the option to choose between UPS and NPS. Employees who are already NPS subscribers will be given an option to switch to UPS. Also read | India: BJP urges top poll body to change Haryana election dates, Congress reacts Key features of the Unified Pension Scheme Assured pension Employees who subscribe to the UPS with at least 25 years of service will get an assured pension of 50% of their average basic pay over the last 12 months before retirement. Other employees having a minimum of 10 years of service will be eligible for a pension proportionate to their tenure. Assured family pension UPS provides an assured family pension after their demise, according to which the employee's spouse will be given 60% of the pension drawn before their death. Assured minimum pension Employees who retire before completing 25 years of their service will be assured a minimum pension of Rs 10,000 monthly after retirement with a minimum of 10 years of service. Also read | Home Minister Amit Shah chairs crucial meeting to strengthen anti-Naxal strategy; officials of 7 states attend Inflation indexation For the subscribers of UPS, the assured pension, family pension and minimum pension will be indexed to inflation. Dearness Relief Both serving and retired employees under the UPS will get Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW). Lump sum payment on superannuation Apart from the assured pension, subscribers of UPS will also receive a lump sum payment on superannuation along with gratuity. This payment will amount to 1/10th of the employee's monthly emoluments, which includes pay and Dearness Allowance, as of the date of retirement for every completed six months of service. (With inputs from agencies)

What is Unified Pension Scheme? Here's what you should know

The Government of India on Wednesday approved productivity linked and non-productivity linked bonus for the year 2019-20.&nbsp;

As per the government, the money will directly be credited in their bank accounts.

Over 30 lakh non-gazetted employees will benefit from the announcement. Total financial implication the decision will be ₹3,737 crore, Union Minister Prakash Javadekar said on Wednesday.

"Union cabinet has given its approval to pay Productivity Linked Bonus (PLB) for the year 2019-2020 to 16.97 lakh non-gazetted employees of commercial establishments like Railways, Posts, Defence, EPFO, ESIC will be benefitted and the financial implication would be ₹2,791 crore," the official statement mentioned.&nbsp;

The Union Cabinet's decision on the festival bonuses comes a few days after Finance Minister Nirmala Sitharaman announced two schemes -- LTC Cash Voucher Scheme and Special Festival Advance Scheme -- to incentivise consumer spending and boost the country’s GDP as part of the Centre’s fresh economic revival push.&nbsp;

The bonus, to be given in a week's time, will encourage the middle-class to spend and thus add to the demand in the economy, the minister said.

(With inputs from agencies)

The Government of India on Wednesday approved productivity linked and non-productivity linked bonus for the year 2019-20. As per the government, the money will directly be credited in their bank accounts.

The Government of India on Wednesday approved productivity linked and non-productivity linked bonus for the year 2019-20. As per the government, the money will directly be credited in their bank accounts. Over 30 lakh non-gazetted employees will benefit from the announcement. Total financial implication the decision will be ₹3,737 crore, Union Minister Prakash Javadekar said on Wednesday. "Union cabinet has given its approval to pay Productivity Linked Bonus (PLB) for the year 2019-2020 to 16.97 lakh non-gazetted employees of commercial establishments like Railways, Posts, Defence, EPFO, ESIC will be benefitted and the financial implication would be ₹2,791 crore," the official statement mentioned. The Union Cabinet's decision on the festival bonuses comes a few days after Finance Minister Nirmala Sitharaman announced two schemes -- LTC Cash Voucher Scheme and Special Festival Advance Scheme -- to incentivise consumer spending and boost the country’s GDP as part of the Centre’s fresh economic revival push. The bonus, to be given in a week's time, will encourage the middle-class to spend and thus add to the demand in the economy, the minister said. (With inputs from agencies)

30 lakh Central government employees to get ₹3,737 crore bonus by next week