The Union Cabinet has approved benefits for the Central government employees and those getting pension with effect from July 1,2007. This was disclosed by Information and Broadcasting Minister Priyaranjan Das Munshi at a press conference in New Delhi on Thursday.

"All India Consumer Price Index for the period ending June 2007, works out to 587.62 per cent which constitutes an increase of 91.82 per cent over the base index of 306.33. Fifty per cent of Dearness Allowance has been merged with basic pay with effect from April 1, 2004," he said.

With effect from July 1, 2007, it will be 41 per cent for all Central government employees.

This marks increase of six per cent of DA over 35 per cent being received by them. The same benefits will also be extended to pensioners.

The cabinet also gave its approval for Bima Yojana for the poor from October 2 as a special tribute to the father of the nation.

"The premium payable will be Rs200 per year out of which half will be paid by the central government and the other half will be taken care of by the state governments. The scheme will benefit over 1 crore poor people and each beneficiary will get Rs 30,000 for natural deaths and Rs 75,000 for permanent disability. If disability is 50 per cent then he or she will get Rs 35,000. This is for the bread-earning members. Two children studying from class 1X-X11 will get Rs 300 each per month as stipend," he said.