The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved a 2% increase in dearness allowance (DA) from January 1, 2017.The announcement, which is in line with recommendations of the 7th Pay Commission, will further boost earnings of 49 lakh central government employees and 55.5 lakh pensioners.
7th Pay Commission – Government tells Parliament that decision on Allowances will be taken soon.
In a written reply to a question on 7th Pay Commission in Lok Sabha, Minister of State for Finance Arjun Ram Meghwal said the Committee, under Finance Secretary Ashok Lavasa, is yet to submit its report. The minister said that the deliberations of the committee are in the final stages.
The Committee on Allowances was formed in July 2016 following protests by government employees over recommendations of the 7th Pay Commission on allowances.