7th Pay Commission Latest News: Though the Union budget dashed the hopes of Central government employees regarding their demands of increment in minimum pay and fitment factor beyond the 7th Pay Commission recommendations, the Dearness Allowance (DA) can be increased by 5% in the future.

The CG employees were also hopeful about change in the tax slab in the Union budget which didn’t happen.

According to the experts, there is an expectation of increment in DA up to five per cent. If the allowance hike is implemented, it will be the biggest increase in the DA since the implementation of the 7th pay scale in 2016.

Harishankar Tiwari, Former Secretary and Assistant Secretary of All India Audit and Accounts Association, AG Office Brotherhood, Allahabad, who also calculates government employees DA, told Zee Business Online that an increase in DA is possible because, according to the Consumer Price Index (CPI) data, inflation has increased in April 2019.

RK Verma, Coordinator of the State Employee Joint Council, UP said that “This time there is a more chance in DA increment because inflation rates have been increased in CPI data of April and May 2019.”

The Central Government had increased the DA by three per cent in January 2019. Many states since then have followed the suit and increased the DA of the state government employees.

Earlier, the Madhya Pradesh government announced the 3 per cent hike in the DA and DR for government employees under 7th Pay Commission recommendations.

The Other States to Announce Salary Hike For Employees:

  • The Uttar Pradesh government announced a hike in the DA after the Central government employees received their share of the bonanza, as per the seventh pay commission.
  • Bihar announced DA and DR hike for its government employees and pensioners. The Nitish Kumar government in the state increased the dearness allowance and dearness relief by 3 per cent taking it from 9 per cent to 12 per cent. The move came into effect from January 1, 2019, and benefitted around 4 lakh state government employees and six lakh pensioners. It will put an additional annual burden of Rs 1,100.94 crore on the state exchequer.
  • Another state which has made a similar announcement a few months back is Uttarakhand. The Trivendra Singh Rawat-government agreed to a 3 per cent DA and DR hike for state employees and pensioners. The increase from 9 per cent to 12 per cent under the 7th Pay Commission came into retrospective effect from January 1, 2019. The move benefitted around 2.5 lakh government employees and pensioners.
  • The salary hike with regard to a 3 per cent increase in DA and DR under 7th Pay Commission was announced for the employees and pensioners in Jammu and Kashmir. The decision was taken at the State Administrative Council (SAC) meeting in Jammu which was held under the chairmanship of Governor Satya Pal Malik.
  • A pay hike was also announced for the employees of Odisha under the 7th Pay Commission. The state government announced a 3 per cent hike in the Dearness Allowance and Dearness Relief for its employees and pensioners. At least 7 lakh employees will get the 12 per cent DA and DR benefit retrospectively from January 1, 2019. The move will put an extra burden of Rs 500 crore on the state exchequer.
  • The Rajasthan government had recently hiked the Dearness Allowance and Dearness Relief for its employees from 9 per cent to 12 per cent. The move will benefit 8.5 lakh employees and 3.5 lakh pensioners of the state government and put a financial burden of Rs 1,435 crore on the state exchequer.

How is the calculation made?

Percentage of DA = {(Average of All-India Consumer Price Index for the past 12 months (Base year 2001=100) -115.76)/115.76}x 100.