7th Pay Commission: To compensate for price rise, the government has approved the release of an additional instalment of Dearness Allowance (DA) to the central government employees and dearness relief (DR) to pensioners. This is 3 percent raise over the existing rate of 9 percent of the basic pay/pension.
The increase in DA and DR has been done on the basis of formula recommended by the 7th Central Pay Commission (CPC). This decision will cost the government coffer Rs 9168.12 crore per annum and Rs 10696.14 crore in FY 2019-20. According to the statement issued by the government, from this increase in DA and DR will about 48.41 lakh central government employees and 62.03 lakh pensioners will be benefitted.
This is a major decision made by the Narendra Modi-led NDA government ahead of 2019 Lok Sabha elections. This is expected to give much-needed relief to these employees, as they in recent months these employees had put up many demands before the government including hike in minimum salary and fitment factors.
It is still remained to be seen whether these goodies could soothe these employees. Earlier, the government hiked salaries of central universities teaching and non-teaching staff. Faculties of the technical institutes had also received a hike.