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7th Pay Commission: BIG announcement on this date! Central govt employees to get Rs 12,500 salary hike

7th Pay Commission: PM Narendra Modi government is soon to make a big announcement regarding pay matrix hike of Central govt employees. According to reports, Centre is likely to increase dearness allowance (DA) for its employees on September 4, after proposed Union Cabinet meeting on Wednesday.

India TV Business Desk India TV Business Desk
New Delhi Updated on: September 03, 2019 19:44 IST
7th Pay Commission: DA hike coming! Central govt employees
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7th Pay Commission: DA hike coming! Central govt employees to get Rs 12,500 pay hike; know when

7th Pay Commission: PM Narendra Modi government is likley to make a big announcement regarding pay matrix hike of Central govt employees within this week. According to reports, Centre is likely to increase dearness allowance (DA) for its employees on September 4, after proposed Union Cabinet meeting on Wednesday.

The cabinet is expected to make an announcement on the 5 per cent DA (Dearness Allowance) hike for the central government employees.

If the central govt employees receive a 5 per cent increase, their salary will jump by anywhere between Rs 900 to Rs 12500 per month, depending on the level. The increase in dearness allowance is expected in the wake of a rise in inflation, as per ICPI figures for months between January and June 2019. Currently, the DA for government employees stands at 12 per cent.

ALSO READ: 7th Pay Commission: BIG pay! Central govt employees DA increases again in July; check your salary hike

 

7th Pay Commission: Dearness Allowance calculation 

Month     AICPI    DA%

Jan         307       13.39
Feb        307        14.02
March    309        14.73
April       312        15.49
May       314        16.29
June      316        17.09
July       319        17.67

What do AICPI figures say:

Month

AICPI DA%

January

307 13.39

February

307 14.02

March

309 14.73

April

312 15.49

May

314 16.29

June

316 17.09

July

319 17.67

Harishankar Tiwari, Former Secretary and Assistant Secretary of All India Audit and Accounts Association, AG Office Brotherhood had said the announcement of hike in the DA of staffers is possible.

He said DA for June 2019 stood at 17.09% as compared to 13.39% in January 2019. The December figures were lower, the reason, the Centre increased the DA by 3%.

How is DA calculated: 

For the employees of Central Government

Percentage of DA = {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 12 months -115.76)/115.76} x 100

For Central Public Sector Employees

Percentage of DA = {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 3 months -126.33)/126.33} x 100

The Dearness Allowance is calculated in the following way:

In June 2019: AICPI -316

Total 12 months: 3673 (301 + 301 + 301 + 302 + 302 + 301 + 307 + 307 + 309 + 312 + 314 + 316) / 12) - (261.4) x 100 / 261.4)
Estimated DA: 17%.

The central govt employees are demanding an increase in the minimum wages up to Rs 26,000 under the 7th Pay Commission as based on fitment factor. Currently, the minimum pay is fixed at Rs 18,000.

ALSO READ: 7th Pay Commission: Centre likely to hike central govt employees HRA, after DA; check details

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