The Central government employees have been expecting a hike in Dearness Allowance (DA) and an increase in the basic pay for quite some time now. Though reports are there that there will be an increase in the DA as per 7th Pay Commission recommendations in July next year, COVID-19 seems to have dampened the hope of any revision in the minimum pay for the time being.
Here are the important details related to the DA hike and basic pay revision announcement being made or expected so far as per the 7th Pay Commission recommendations:
DA Hike For Central Government Employees: Key Takeaways
- The Centre had approved a 4 per cent DA hike for the employees in March 2020.
- The hike was freezed till July 1, 2021, in view of the Covid-19 pandemic situation which hit the economy hard.
- In a April order, it was announced that the CG employees and pensioners will not get 21 per cent DA, which they would have from January 1, 2020.
- Instead of 21 per cent DA, the CG employees are currently getting DA at the rate of 17 per cent and the same arrangement will continue till June 2021.
- Government will not pay arrears from January 1, 2020 to June 30, 2021.
- The DA rate is expected to be revised again on July 1.
Basic Pay Hike Demand And Announcements So Far
- The central government employees started demanding a hike in the minimum pay since the day of implementation of the recommendations of the 7th Pay Commission.
- They urged the Narendra Modi government to reconsider their basic pay citing that the present minimum pay has failed to put any impact on their financial position.
- Reports were there that the Centre would hold a meeting and come up with a decision in this regard during its Cabinet meeting in November, but it never happened since then.
- Though it was believed that the Centre may consider a revision after 2020 fiscal, coronavirus played spoilsport.
It is pertinent to mention here that the central government employees were demanding a hike in the fitment factor from the present 2.57 times to 3.68 times or an increase in the basic pay by Rs 8,000.