7th Pay Commission: What govt employees can expect from Interim Budget 2019-20

7th Pay Commission
7th Pay Commission

7th Pay Commission: Though central government employees are demanding pay and fitment factor hike for long, there is no breakthrough yet. There is no firm word from the government yet. However, Finance Minister Arun Jaitley earlier had hinted that there might be more sops for the central government employees after it increased in Dearness Allowance (DA) in August 2018 by 2 percent.

This DA hike was announced effective from July 1, 2018, in addtion to 7 percent existing DA of the basic pay or pension of an employee or pensioner.Under 7th CPC salary breakup, the government has in March 2018, increased DA from 5 percent to 7 percent.

Dearness Allowance or DA is increased to offset the impact of inflation on the employees salaries. About 48.41 lakh central government employees and 61.17 lakh pensioners were benefited from these increase in the allowance.

However, since there is general elections this year, there might be some big bang announcement from the government which can soothe the nerves of the central government employees. According to reports, the government may hike DA by 3 percent for these employees to woo them ahead of the general elections 2019.

DA is calculated on the basis of Consumer Price Index (CPI). For the first time since the 7th pay commission was implemented in January 2016, DA hike may be close to 3 percent or higher.

Last year, the government had also revised the pension for both teaching and non-teaching staff of central and state universities. About 24 lakh pensioners benefited from the move.

In a different development, the Indian Railways has announced that it will recruit 2.3 lakh employees in nex two years and where the recently announced 10 percent quota for the Economically Weaker Sections (EWS) among the upper castes will be available.The recruitment will be in two phases. In the first phase, there will be 1.31 lakh recruitment and in the second phase, 99000 positions will be filled.

This DA hike was announced effective from July 1, 2018, in addtion to 7 percent existing DA of the basic pay or pension of an employee or pensioner.Under 7th CPC salary breakup, the government has in March 2018, increased DA from 5 percent to 7 percent.

Dearness Allowance or DA is increased to offset the impact of inflation on the employees salaries. About 48.41 lakh central government employees and 61.17 lakh pensioners were benefited from these increase in the allowance.

However, since there is general elections this year, there might be some big bang announcement from the government which can soothe the nerves of the central government employees. According to reports, the government may hike DA by 3 percent for these employees to woo them ahead of the general elections 2019.

DA is calculated on the basis of Consumer Price Index (CPI). For the first time since the 7th pay commission was implemented in January 2016, DA hike may be close to 3 percent or higher.

In a different development, the Indian Railways has announced that it will recruit 2.3 lakh employees in nex two years and where the recently announced 10 percent quota for the Economically Weaker Sections (EWS) among the upper castes will be available.The recruitment will be in two phases. In the first phase, there will be 1.31 lakh recruitment and in the second phase, 99000 positions will be filled.

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