7th pay commission: Central employees are getting salaries according to the seventh pay commission matrix. When 7th CPC came into effect, the government has removed the dearness allowance but afterwards when employees demanded to bring it back. The government allowed the same.
At present the employees are getting 9% DA.
According to a report in Zee Business, the new pay hike after 9% DA will be announced in March 2019.
DA has been calculated on the basic salary. Earlier, it was six per cent. The impact on the exchequer on account of both DA and DR would be Rs 6,112.20 crore per annum and Rs 4,074.80 crore in the financial year 2018-19 (8 months from July, 2018 to February, 2019).
"The Union Cabinet...has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. July 01, 2018 representing an increase of 2 per cent over the existing rate of 7 per cent of the Basic Pay/Pension, to compensate for price rise," the official press release read.
| Level | Minimum basic pay | Hike | Level | ||
| Basic Pay in Rs | |||||
| After 2% increase | |||||
| Level 1 | 18000 | 360 | Level 11 | 67700 | 1354 |
| Level 2 | 19900 | 398 | Level 12 | 78800 | 1576 |
| Level 3 | 21700 | 434 | Level 13 | 118500 | 2370 |
| Level 4 | 25500 | 510 | Level 13A | 131100 | 2622 |
| Level 5 | 29200 | 584 | Level 14 | 144200 | 2884 |
| Level 6 | 35400 | 708 | Level 15 | 182200 | 3644 |
| Level 7 | 44900 | 898 | Level 16 | 205400 | 4108 |
| Level 8 | 47600 | 952 | Level 17 | 225000 | 4500 |
| Level 9 | 53100 | 1062 | Level 18 | 250000 | 5000 |
| Level10 | 56100 | 1122 |
The hike will benefit about 48.41 lakh central government employees and 62.03 lakh pensioners. The increments have been as per the recommendations of the 7th Pay Commission.
Meanwhile, this year's Diwali brought many cheers to the government employees of another BJP-ruled state. After Uttar Pradesh, Arunachal Pradesh government announced a hike in Dearness Allowance (DA) and Dearness Relief (DR) for its employees.
The announcement, made before Diwali, was in line with the recommendations of the 7th pay commission.
After the hike, the DA and DR for the employees have raised from 7 per cent to 9 per cent, a report by Zee Business said.
The hike will be effective from July 1 which means that the employees will also get arrears for four months.
The Pema Khandu government said in a notification that the DA hike would be applicable only for the state government employees and not the institutions receiving grants-in-aid from the government.
The arrears will be credited in the bank accounts of the employees.