7th Pay Commission Latest Update: 3 Big Announcements! For More Than 50 Lakh Government Employees & 68 Lakh Retirees | Check Here

There is good news for the Central Government Employees. As the employees are likely to receive pay hike after Holi, i.e., in March, the Central Government is expected to announce an increase in DA for employees and retirees in the near future. Simultaneously, the DA Arrears money, which has been pending for 18 months, is expected to be received after Holi. 

More than 50 lakh employees and 68 lakh retirees will benefit from the hike in DA. The government is expected to make an announcement before the next election.

Central Government Employees await 3 Big Announcements 

A meeting of the Union Cabinet is going to be held today on March 16. In this meeting, the central government can announce an increase in the DA of central govt employees, as well as a decision regarding pending DA arrears, may be taken. Along with this, a big announcement can also be made on the minimum salary and fitment factor.

If the government takes a decision on the disbursement of pending DA in the meeting, then an amount of up to Rs 2 lakh can be credited in the account of the employees simultaneously.

In case the government increases the fitment factor to 3.68 percent, employees’ minimum salary will go up to Rs 26,000 from Rs 18,000. Currently, central government employees get their salary based on the fitment factor of 2.57 percent under the 7th Pay Commission. Fitment factor is used to calculate central government employees’ basic pay.

The Central Government and the employees have been arguing for a long time on the reinstatement of the pending DA. However, no final decision has yet been made. The subject is expected to be discussed with the Cabinet Secretary in the coming days.

Calculation of Hike: 

An increase in 3% DA means that the total DA of Central government employees will be 34%. It means a Central government employee with a basic salary of Rs 18,000 will receive an annual dearness allowance of Rs 73,440. See calculation below:

• Basic salary of employee: Rs 18,000
• New DA (34%) Rs 6120/month
• DA so far (31%) Rs 5580/month

How much dearness allowance increased 6120- 5580 = Rs 540/month

• Increase in annual salary 540X12 = Rs 6,480
• Calculation on maximum basic salary:
•  Basic salary of the employee: Rs 56900
• New DA (34%) Rs 19346 / month
• DA so far (31%) Rs 17639 / month

How much dearness allowance increased 19346-17639 = 1,707 Rs/month

• Increase in annual salary 1,707 X12 = Rs 20,484

Current Dearness Allowance (DA) Increase:

According to media reports, the Dearness Allowance (DA) hike announcement could take place by the end of March. In January 2022, DA was increased by 3%, bringing the total DA received by employees to 34% from 31%. According to AICPI data, DA has reached 34.04% until December 2021. After a 3% increase in allowance, the DA on a Rs 18,000 basic salary will be Rs 73,440 per year

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