Cabinet okays DA hike by 4 percentage points for central govt employees

The Union Cabinet on Thursday, ahead of the general elections, approved an additional installment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) to pensioners by 4 percentage points to 50 per cent of basic pay and pension. This will be effective from 1 January 2024, benefitting about 4.9 trillion Central Government employees and 6.8 trillion pensioners “to compensate against price rise”.

“This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” the government said in a statement.

“As DA has now become 50 per cent of basic pay, the housing rent allowance has also been increased to 10 per cent, 20 per cent, and 30 per cent from 9 per cent, 18 per cent, and 27 per cent, respectively. The upper ceiling of gratuity has also been increased by 25 per cent to Rs 25 lakh,” Trade Minister Piyush Goyal said while briefing reporters.

Goyal said taking into account all the benefits that have been increased for the central government employees and pensioners, the total impact on the exchequer will be Rs 24,400 crore between January 2024 to February 2025.

Cabinet Approves Industrialisation Scheme for North East

The Cabinet also approved an industrialisation scheme for the North-East region named Uttar Poorva Transformative Industrialization Scheme, 2024 (UNNATI – 2024) for a period of 10 years from the date of notification along with 8 years for committed liabilities at a total cost of Rs 10,037 crore. The maximum eligible benefits to one unit from all components of the scheme is Rs. 250 crore.

“This will be a Central Sector Scheme. The scheme is proposed to be divided into two parts. Part A caters to the incentives to the eligible units (Rs. 9737 crores), and Part B, is for implementation and institutional arrangements for the scheme (Rs. 300 Crore),” the government said in a statement.

The proposed scheme envisages approximately 2180 applications, with an anticipated direct employment opportunities of about 83,000 during the scheme period. A significant number of indirect employment is also expected to be generated.

“To maintain a proper balance between the industrial growth and pristine environment of the NER (North East Region), certain industries are kept in the positive list such as Renewable energy, EV charging stations, etc., and there is a Negative list for certain sectors which may hamper the environment such as cement, plastic, etc.,” a government statement said.

All eligible industrial units to commence their production or operation within four years from the grant of registration. Districts are categorized into two zones: Zone A (Industrially Advanced Districts) & Zone B (Industrially Backward Districts). While 60 per cent of the outlay of Part A has been earmarked for eight North East states, 40 per cent will be allocated on a First-In-First-Out (FIFO) basis.