Update on 7th Pay Commission: The new year is off to a good start for Central government employees, as there is good news about their salary in 2023. According to media reports, the government is expected to make a decision on three major issues: raising DA and DR, revising fitment factors, and clearing 18-month DA arrears.

Dearness allowance (DA) and dearness relief (DR) for the unemployed are revised twice a year, on January 1 and July 1. The most recent increase increased the DA by 4% to 38%. Earlier this year, the government increased the DA by 3% to 34% under the 7th Pay Commission.

Update on 7th Pay Commission in details

According to media reports, the DA and DR could be raised by 3-5 percent in March 2023, with effect from January of the following year. The DA will rise by up to 43 percent as a result of this increase.

The issue of 18-month DA arrears payment from January 2020 to June 2021 may also be resolved soon, and employees may be paid an 18-month DA arrear.

Central government employee unions have long advocated for raising the minimum wage from Rs 18,000 to Rs 26,000 and increasing the fitment factor from 2.57 to 3.68 times. If the government increases the fitment factor for central employees, their salaries will rise.

If the fitment factor is increased to 3.68, the employees’ basic pay will be Rs 26,000. Right now, if your minimum salary is Rs 18,000, you will receive Rs 46,260 (18,000 X 2.57 = 46,260) as per the 2.57 fitment factor. If the fitment factor is 3.68, your salary is Rs 95,680 (26000X3.68 = 95,680).

Is the 8th Pay Commission Coming Soon?

Currently, government employees who are getting salaries based on the 7th pay commission recommendations are expected to receive a new pay commission, as the employees union is compiling a memorandum seeking a raise in employee compensation or the implementation of the 8th CPC.

However, there has been no confirmation or declaration from the government about the implementation of the 8th Pay Commission.