Dearness allowance for central government employees hiked by 2%
What's the story
The Indian government has approved a 2% hike in the Dearness Allowance (DA) for its employees. The decision was taken during a Union Cabinet meeting today. The move by the Centre comes amid demands from employee bodies for major changes in the pay structure under the proposed 8th Pay Commission.
Pay structure demands
Employee bodies demand higher fitment factor
The National Council-Joint Consultative Machinery (NC-JCM) has demanded a higher fitment factor of 3.83 under the proposed 8th Pay Commission. If approved, this could raise the minimum basic pay from ₹18,000 to nearly ₹69,000. The NC-JCM has also suggested widening the definition of "family" for pay calculations to include dependent parents and capping pay disparity while increasing increments and inflation-linked allowances.
Fund approval
Cabinet approves ₹13,000cr Sovereign Maritime Fund
Apart from the DA hike, the Cabinet is also said to have approved a Sovereign Maritime Fund with a corpus of ₹13,000 crore. The fund aims to offer stable and affordable insurance cover for Indian-flagged vessels as well as those coming to India or originating from it. The move is part of the government's efforts to bolster maritime security and safety.
Scheme extension
Cabinet extends PMGSY till 2028
The Cabinet is also learnt to have extended the Pradhan Mantri Gram Sadak Yojana (PMGSY) till 2028. The decision comes with an extra allocation of ₹3,000 crore for the rural road development scheme. The move is aimed at improving connectivity in rural areas and ensuring better access to essential services and facilities for the people living there.