7th Pay Commission: DA Hike For Central Government Employees Likely To Be Announced By THIS Date

Earlier, the 6th pay commission had recommended the fitment ratio at 1.86 %, while the 7th CPC recommended 2.57%, at which the Central government employees are being paid at present.

7th Pay Commission: The Modi government is likely to make an announcement regarding the Dearness Allowance (DA), and Dearness Relief (DR) hike in the next few days. According to the reports, the Centre is planning to revise DA from the current 38% to 42% and the fitment factor for lakhs of employees after Holi.

According to an Economic Times report the Centre is planning to revise the DA and fitment factor after March 8. Currently, the common fitment factor is at 2.57%, which means an employee who receives Rs 15,500 in 4200 Grade Pay, would get a total pay of Rs 39, 835, by multiplying (Rs 15,500 x 2.57) as per 6th Central Pay Commission.

Earlier, the 6th pay commission had recommended the fitment ratio at 1.86 %, while the 7th CPC recommended 2.57%, at which the Central government employees are being paid at present. The central government employees, however, now demand that the fitment factor should be hiked to 3.68. If their demand is accepted, then this would lead to a minimum wage of Rs 18,000 being increased to Rs 26,000.

Talking to PTI, All India Railwaymen Federation, General Secretary, Shiva Gopal Mishra said, “The CPI-IW for December 2022 was released on January 31, 2023. The dearness allowance hike works out to be 4.23 per cent. But the government does not factor in hiking DA beyond decimal point. Thus DA is likely to be increased by four percentage points to 42 per cent.”

He further explained that the expenditure department of the Finance Ministry will formulate a proposal to hike DA along with its revenue implication and will put up the proposal before the Union Cabinet for approval.

Dearness allowance calculation:

For central government employees: The DA is calculated as — {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 12 months -115.76)/115.76} x 100.

For central public sector employees, the DA is calculated as — {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 3 months -126.33)/126.33} x 100.

It is important to note that if DA is hiked to 42 per cent from 38 per cent, then employees’ dearness allowance on their salary will also jump. Notably, DA is different depending upon the level of the pay matrix of an employee.