A remarkable day for central government employees: The Central Cabinet will perhaps approve a huge raise in the basic salary under the Seventh Pay Commission. Sources later informed that this hike could be further benefited by an increase of an estimated Rs 720 towards the basic salary. The basic salary-not much above what they get now-will help these employees to have a little extra money to spend on themselves and to have some benefits on the other side too-reason-
Reasons For Hiked Pay Salary
The increase is essentially on the eve of soaring inflation and living high costs. The pay of the central government employees becomes revisable and reviewed regularly under the 7th Pay Commission. Dearness Allowance (DA) and the fitment factor are major factors behind the increment of salaries; this is the latest rise in as per commitment from the side of the government towards its employees.
Features Of The Proposed Increase In Salary
- Increase in Basic Salary: The employees will entitled to a monthly increase of Rs 720 in their salary.
- Effect on DA: The increase in basic salaries will proportionally have a counterpart in the increase in DA component.
- Date of Effect: The revised salary will take into effect from the start of the next financial quarter.
- Beneficiaries: More than 47 lakh central government employees plus about 68 lakh pensioners will capture the benefits related to this change.
New Salary Computation
Basic increase would affect all in hand salary, thus making it appear to be an increase in hand. For example, if the employee’s basic salary is Rs 18,000, then he/she would get a hike of Rs 720 in his/her salary but will also be eligible for hike in House Rent Allowance (HRA) and Travelling Allowance (TA).
- Base salary- Rs 18,000 + Rs 720 = Rs 18,720
- New DA (Assumed at 50%): Rs 9360
- Total Gross Salary: Rs 28080 + Other Allowances
The Government’s Stand
The government asserts that further necessary pay raise and timely changes in the employees’ salaries would further safeguard them in a way under the 7th Pay Commission. The Cabinet approval is going to definitely boost the morale and ensure a further shield of financial security to the employees.
Also Read: DA Hike Update: Central Govt Employees And Pensioners Expect Major Announcement