In a good news for Central government employees, they are likely to get 5% hike in Dearness Allowance (DA) as a Dusshera gift.
According to reports, currently Central government employees receive 12% DA, however, in this festive season, they are likely to receive an increase of 5% as part of the 7th pay commission. Their present salary is based on the recommendations of the 7th pay commission. For every six months, the government analyses the DA. Any decision to increase the allowance would prove to be a major relief to the central government employees who have been seeking an improvement in their salary.
In January 2019, the DA of the employees was increased and it was likely to be implemented in July. However, as per reports, the DA hike is likely to be implemented by the last week of August or during the festive time of Dusshera in October. Employees will then receive their arrear amount for July, August, and September.
After Nirmala Sitharaman took charge as the new Finance Minister in Modi government 2.0, she was addressed to the concern that employees weren't satisfied with recommendations of the 7th Pay Commission regarding minimum pay and have been demanding a hike of Rs 8,000 and increase in the fitment factor up to 3.68 times.
Earlier, the Central government prior to the Lok Sabha polls had announced a hike of three percent in the DA and DR for its employees and pensioners. Prior to that six states had increased the DA and DR for its employees from 9% to 12%. Those states were Uttar Pradesh, Bihar, Uttarakhand, Rajasthan, Jammu & Kashmir, Odisha.
Meanwhile, the Maharashtra government recently decided to give DA (Dearness Allowance) to state government employees after implementing recommendations of the Seventh Pay Commission for the state municipal corporation, municipal council and Nagar Panchayat employees and pensioners last month. The move by Devendra Fadnavis government is likely to benefit around 4 lakh government employees and pensioners ahead of Dussehra. The state government has implemented the 7th pay Commission recommendations from 1st January 2019 for all state government employees. The government is expected to spend around Rs 1.4 lac crore after the implementation of the 7th pay commission, a lot more than Rs 62,123 crore it was spending earlier.
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