7th Pay Commission: The Narendra Modi government has finally fulfilled the long-standing demand of the Central government employee by approving hike in their salary.
The Union Cabinet, chaired by the PM Modi on Friday approved to release an additional instalment of Dearness Allowance (DA) to Central government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2020.
There will be an increase of 4 per cent over the existing rate of 17 per cent of the Basic Pay/Pension, to compensate for price rise.
The hike in DA will reportedly benefit about 48.34 lakh Central government employees and 65.26 lakh pensioners.
Minister of State for Finance Anurag Thakur had earlier informed Rajya Sabha that DA and DR of Central government employees under the 7th Pay Commission had been due from January 1.
"DA and DR are granted to serving employees and pensioners of the Central government respectively each year with effect from January 1 and July 1, and normally paid in March and September, respectively," he had said.
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In October 2019, the government had increased the DA from 12% to 17%, which was the highest increase in one go. Announcing the same, Union minister Prakash Javadekar had said that a 5 per cent increase in DA was the highest in the last seven years as it was used to be around 2-3 per cent.
“This is the highest ever 5 percentage points increase in DA in one go by the central government,” Union Minister Prakash Javadekar had said then while making the announcement.
On the other hand, the Central government employees who are presently getting Rs 18,000 basic pay, have been demanding an increase of Rs 8000 in the minimum pay. If their present fitment factor (2.57 times) is hiked to 3.68 times (as per the demand), they will get Rs 26,000 as the basic pay.
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