7th Pay Commission: Dearness Allowance Likely to be Raised by 2 Per Cent For Central Govt Employees, Pensioners

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New Delhi, March 7: The Narendra Modi government is reportedly preparing to hike dearness allowance for central government employees and pensioners. According to sources, the government is in the process of approving 2 per cent hike in dearness allowance.

While dearness allowance may get a hike, there are conflicting reports over whether the government will increase the minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission (7th CPC) or not.

The Union Cabinet approved the recommendations of the 7th Pay Commission on pay hike and allowances on June 28, 2016. The 7th Pay Commission had recommended a 14.27 per cent hike in basic pay — the lowest in 70 years. The 7th Pay Commission had raised the minimum pay from Rs 7,000 to Rs 18,000 per month while the maximum pay has been hiked from Rs 80,000 to Rs 2.25 lakh per month and Rs 2.5 lakh for the cabinet secretary—the senior-most civil servant.

In September 2017, the government had given gave its approval for an increase of one per cent additional DA to central government employees and Dearness Relief (DR) to pensioners to compensate for price rise.

This additional instalment of DA represented an increase of one per cent over the existing rate of four per cent of basic pay/pension and is in accordance with the accepted formula based on the 7th Central Pay Commission recommendations, an official release said. The decision benefited about 49.26 lakh central staff and 61.17 lakh pensioners

The release said the DA and DR would burden the exchequer with Rs 3,068.26 crore per annum and Rs 2,045.50 crore in the 2017-18 fiscal (July 2017 to February 2018).

(With inputs from agencies)