7th Pay Commission Latest News: The central government led by Prime Minister Narendra Modi brought good news for the central government employees as they announced a 4% hike in the Dearness Allowance (DA) along with the central pensioners from the 1st January 2020.
This hike in DA means that when the March 2020 salary and pension will be credited to the accounts, they will also get the arrears of two months (January and February) as well. This decision of the Government of Indian (GOI) will aid close to 48 lakh existing central government employees and 65 lakh pensioners (over 1.1 crore families). The DA will be increased from 17% to 21% after the announcement.
Following the 4% increment in DA, the monthly salary of the central government employees will increase by Rs. 720 to Rs. 10,000 a month according to experts.
The Central Government has also announced of DA twice a year. This 4% hike of DA is H1-2020 DA, which was expected to come before Holi. The 4% increase in DA is in sync with the expectation of the central government employees and the central government pensioners with the inflation data shared by the GOI from July 2019 to October 2019 which showed 3 points rise in inflation.
Former President of A G Brotherhood, Harishankar Tiwari said, “The Central Government has announced 4 per cent DA because the AICPI (All India Consumer Price Index) remained at 325 in November and December 2019, due to which January 2020 DA went above 21 per cent. Currently, the DA rate is 17 per cent only. That’s why there were speculation about 4 per cent DA hike for central government employees and pensioners.” While talking on the matter.
Expanding on the DA calculation, Mr Tiwari said, “In November 2019, AICPI inflation was at 328 basis points and AICPI data didn’t go down by 12 points, which made the central government to announce 4 per cent DA.”
He said that the reason why AICPI data did not go down in December last year was because of the price skyrocketing of the essential commodities.
Now, as the Government of India has announced a 4% hike in the Dearness Allowance for the Central Government employees and pensioners, the Level-1 Central Government employees could get a salary hike of Rs. 720. Apart from DA, the Travel Allowance (TA) will also be increased by the same percentage as well.
The Central Government employees at the Cabinet Secretary level could get a monthly salary hike of Rs. 10,000. The basic salary of a Level-1 employee of the Central Government is Rs. 18,000 while the employees at the Cabinet Secretary level gets a monthly basic salary of Rs. 2.5 lakh.