Union Cabinet Boosts Pay and Pensions, Bolsters Electronics Manufacturing

The Union Cabinet approved a 2% Dearness Allowance hike for Central Government employees and pensioners, impacting 115.21 lakh individuals. Additionally, a Rs.22,919 crore Electronics Component Manufacturing Scheme was launched to strengthen India's supply chain and create substantial domestic and global investment opportunities.

On Friday, the Union Cabinet, led by Prime Minister Narendra Modi, sanctioned a 2% increment in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. This adjustment, effective from January 1, 2025, raises the existing rate from 53% to 55% of the basic pay or pension, addressing the inflationary pressures faced by approximately 48.66 lakh government employees and 66.55 lakh pensioners.

Information and Broadcasting Minister Ashwini Vaishnaw announced that this move will cost the exchequer an estimated Rs. 6614.04 crore annually. The hike aligns with the seventh Central Pay Commission's recommendations, aiming to mitigate the impact of rising prices on government workers and retirees.

In a separate development, the Cabinet approved the ambitious Electronics Component Manufacturing Scheme, backed by Rs.22,919 crore, to advance India's self-reliance in the electronics sector. The initiative is expected to draw Rs.59,350 crore in investments, ramp up production to Rs.4,56,500 crore, and create 91,600 direct jobs, reinforcing India's presence in the global electronics supply chain.

(With inputs from agencies.)