7th Pay Commission Latest News: The Central government employees, who have been demanding a hike in minimum pay and fitment factor beyond the 7th Pay Commission recommendation, are likely to get a Dearness Allowance (DA) hike soon.

According to reports, the Central government can announce the increase in DA on September 4 after the proposed cabinet meeting.

If the Dearness Allowance is increased by 5 per cent, the salary of the central government employees will increase by Rs 900 to Rs 12,500, depending on the basic salary.

The changed stance of the government amid the economic slowdown can force the government to infuse more capital in the market after it received Rs 1.76 lakh crore from the Reserve Bank of India (RBI).

Union Finance Minister Nirmala Sitharaman has been holding meetings with industry experts and other stakeholders in order to take measures to boost the economy.

According to Zee Business Online, Harishankar Tiwari of AG Office Brotherhood, Prayagraj, said that the DA for June stood at 17.09% as compared to 13.39% in January. The December figures were lower, the reason, the government increased the DA by 3%.

The government had abolished the DA in 2016 when the 7th Pay Commission recommendations were implemented but later it was added again and increased every six months as per the All India Consumer Price Index(AICPI).

The AICPI for July month stands at 319 which indicates a DA of 17.67% against 13.39% in January.

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.