7th Pay Commission: August and September will bring joy and profit for over 1 crore central government employees and pensioners who are early waiting for the hike in dearness allowance and dearness relief. It is expected that the government employees can get three gifts from the Centre. According to the latest information given by the employees’ organisations and media, the Central Government is planning to increase DA, arrears and fitment factor.

7th Pay Commission: Government’s plan to increase DA

The Government’s plan to increase DA will provide relief to employees and pensioners amid inflation and shrinkflation. The government can also take a big decision on Fitment factor and arrears payments which has been due for a long time.

In order to woo the common public following Assembly elections in Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana and Mizoram, the central government can give these three gifts to the government employees. However, the government has made no official announcement regarding the increase in DA but DA hike in the offing.

AICPI index released

Amidst all this, according to the AICPI index released so far, a 4 per cent increase is expected in the dearness allowance and dearness relief of central employees and pensioners. If this happens, their dearness allowance will increase from 42 to 46 per cent. If this happens then their salary may increase from Rs 8,640 to Rs 27,312 annually. This index will be effective from July 1 after the hike.

It is significantly noted that the last time the fitment factor was increased in the year 2016. The 7th Pay Commission was also implemented in the same year of 2016. At that time the minimum salary of the employees went straight from Rs 6,000 to Rs 18,000. While the ceiling was increased from Rs 90,000 to Rs 2.5 lakh. Now the government can again increase the salary of central employees this year.