7th Pay Commission: Big Hike For Central Govt Employees In Budget 2020?

It seems, there are some good news on the cards for the Central government employees as the Narendra Modi government is expected to make some major announcements on pay hike under the 7th Pay Commission during Budget 2020.

It is believed that the government will announce a hike in dearness allowance (DA) on the basis of the inflation in the previous half of the year.

Speculations are rife that the Centre may announce a 4 per cent DA hike following which the DA would go up  to 21 per cent from the existing 17 per cent or the employees’ salary would be increased in the range of Rs 720 to Rs 10,000.

Consumer Price Index (CPI) had hit 328 levels in November last year and thus, the DA going below 4 per cent is not possible provided CPI improves by 12 points, Zee Business had earlier quoted Harishankar Tiwari, former president of AG brotherhood, as saying.

The Central government employees’ DA hike is announced twice a year, mostly between January to June and July to December.

On the other hand, the 7th Pay Commission had earlier recommended a hike in the basic minimum pay (Rs 18,000) but the Central government employees are of the view that it needs to be increased to Rs 26,000.