7th Pay Commission Latest News: Over 1 crore state and Central Government employees and pensioners may soon get a salary hike. If reports are to be believed, these employees are likely to get a hike of up to 3 per cent dearness allowance (DA) from January 1, 2019. The same has been confirmed to Zee Business by Praygraj based AG Office Brotherhood and ex-Assistant Secretary-General of All India Audit and Accounts Association, Harishankar Tiwari. The news comes as a ray of hope for all the 50 lakh CG employees and pensioners who are waiting for the Centre to give a nod to their demands of a hike in minimum pay and fitment factor beyond 7th Pay Commission recommendations.

As per the calculations done in accordance of the Consumer Price Index, the DA is all set to witness an increase of up to 3 per cent for the first time since the implementation of 7th Central Pay Commission  or 7th CPC on January 1, 2016. If we are to believe what the experts are predicting, then the DA is likely to stay at 3 per cent or more from 2019. There is also a chance that the employees may get up to 4 per cent DA but that will happen only if the consumer price index of December month rises to 6 per cent.

The Dearness Allowance for the Central Government employees was increased to 9 per cent from 7 per cent in August, 2018. Prior to this, a hike of 2 per cent was also announced in March.

The news comes at a time when reports are doing rounds that the 50 lakh Central Government employees and an equivalent number of retirees, who are seeking a hike in minimum pay and fitment factor beyond 7th Pay Commission recommendations, may not get to hear a good news anytime soon. Minister of State for Finance P Radhakrishnan has reportedly again claimed that the Centre is not mulling over the proposal for an increase of 3.68 times from 2.56 times in fitment factor for the Central Government employees, while quashing their hopes.

He had made similar claim in March 2018 as well when the minister said that the Centre is not considering a raise the minimum pay and fitment factor of 50 lakh Central Government beyond 7th Pay Commission recommendations.

What is Dearness Allowance?

Dearness allowance is paid to take into account the impact of inflation which increases the cost of living. The allowance is paid to government employees including pensioners so that they adjust their expenditure in line with the inflation rate. With an increase in dearness allowance, the impact of inflation gets cushioned on government employees.