The increase in DA will only mildly support the economy,” said DK Joshi, chief economist at financial analysis firm Crisil.
In a statement, the government said Tuesday’s decisions — particularly the one on the gratuity bill — were made after considering the increase in inflation and wages. “The government is of the view that the entitlement of gratuity should be revised for employees who are covered under the Payment of Gratuity Act, 1972, which is an important social security legislation to wage earning population in industries, factories and establishments”.
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