7th Pay Commission: Central govt employees likely to get DA hike, 48 lakh staffers to be benefited

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Central government employees may get good news amid the coronavirus pandemic as the Centre is likely planning Dearness Allowance (DA) of its staffers under 7th Pay Commission. The salaries of the employes may lead to hike before Diwali as the Union government is planning to change the base year for the consumer price index for industrial workers (CPI-IW). The move is likely to benefit 48 lakh central government employees. 

According to a media report, this move will lead to a direct hike in salary of central government employees since their dearness allowance (DA) is directly dependent on the way CPI-IW is calculated. 

To be noted, the government calculates DA with the help of CPI-IW Index.

“The government is going to prepare a new Consumer Price Index for Industrial Workers. The base year maybe 2016,” said a senior official of the Labour Ministry on the condition of anonymity, according to media reports. The change in the base year directly affects DA of the staffers.   

Currently, the govt has frozen the increment in DA had till June 2021 due to Coronavirus pandemic and central government employees are being paid DA at the previous rate of 17% interest only. This also implies that increment in salary of central government employees might take some time.  

In March, the government had increased DA of central government employees by 4%. However, in April, the government decided to implement this change from June 2021 instead of April this year, citing pandemic.