Central government plans to increase stipend from 38 to 42 percent for one crore employees and pensioners

New Delhi: It has been reported that the central government is planning to increase the stipend from 38 percent to 42 percent to more than one crore government employees and pensioners.

The gratuity rate for government employees is revised every 6 months. To compensate for the rise in prices, the stipend for employees and pensioners is increased. Based on the consumer price list, the discount rate is inflated.

For this, the Union Ministry of Industries publishes the Consumer Price List for Labor every month.

Prior to this, the increase in dearness allowance for central government employees was changed on September 28 last year. On the basis of the 12-month average of the All-India Consumer Price Index ending June last year, the discount rate was increased by 4 per cent to 38 per cent. It came into effect from July 1 last year.

In this case, the consumer price list report for the month of December 2022 was published on January 31. In this, it has been informed that the allowance should be increased by 4.23 percent.

As of January 1…

Therefore, the central government is likely to announce a 4 percent increase in the concessional allowance from the existing 38 percent to 42 percent, said Shiv Gopal Mishra, general secretary of the All India Railway Employees Federation. The Expenditure Department of the Union Finance Ministry prepares the proposal for raising the allowance and forwards it to the Union Cabinet for approval. If the same is approved, the increment will be given on the basis of the 1st January last.

This will benefit more than one crore central government employees and pensioners.

After the central government hikes the domestic tariff, it is expected that the state governments will also raise the domestic tariff in parallel. State Government employees and pensioners will also benefit from this.