Although the demands of the central government employees for pay hikes were not met, they will still get to enjoy dearness allowance (DA) hikes on a regular basis, as per the 7th Central Pay Commission. The Government had earlier brought down the DA to zero (0) during the implementation of the 7th Pay Commission. However, owing to the increasing cost of everyday essential goods, the DA was reinstated.
Currently, the DA of the Central and State Government employees is nine per cent. Their salary increment is based on the DA, which was raised from seven to nine per cent recently.
The reinstatement of DA is beneficial for central government employees, who will receive the next hike in six months. This will raise their salaries accordingly. If the Centre raises the fitment factor above the present 2.57 times level, it will be even better for the staff.
As per the 7th PC system’s pay matrix, Central Government employees who earn a basic salary of Rs 18,000 will receive a DA of nine per cent of the salary, which comes to about Rs 1620. In July 2018, the DA was increased by two per cent. Following this, there has been a minimum increase of Rs 360 in salaries.
Those who have been in service for say about 40 years are considered to have received 40 increments during their tenure. Therefore, the DA will differ as per the existing basic salary. During this period, with the changes in the Pay Commission, the basic salary has also increased multiple times. For instance, the employees who have been serving for five years have a basic salary of approx. Rs 20300, on the basis of which they will receive a DA of about Rs 406.