7th Pay Commission: Base Salary of 50 Lakh Government Employees Likely To Be Revised

The centre is allegedly considering revising the base salary of more than 50 lakh government workers following a 4% Dearness Allowance boost.

The DA is a cost of living adjustment allowance paid to employees and pensioners to compensate for the rising inflation rate. It is calculated based on the Consumer Price Index (CPI) and is revised twice a year.

There are also many rumors that the Modi-led administration may abolish the pay commission and devise a new method for determining salaries. Employees will be able to modify their fitting factor thanks to the new update. Nothing, however, has been verified as of yet.

For the unseen, government workers have been requesting an increase in fitting factor to 3.68 for many months. The common fitment factor is 2.57 percent as of right now. The anticipated increase will bring the minimum salary from its present level of Rs 18,000 to Rs 26,000.

Anurag Thakur, a Union Minister, declared a 4% increase in the dearness allowance for Central government employees earlier last month. The DA is now 42% after the increase in compliance with the 7th Central Pay Commission's recommendations.

The official notice read as follows: "The release of a further installment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due on January 1, 2023, has been approved by Cabinet today. Both 69.76 lakh pensioners and 47.58 lakh employees will gain from this."

Under the 7th Pay Commission, DA (dearness allowance) and DR (dearness relief) were provided at a rate of 38% to central government employees and pensioners. This allowed will rise to 42 percent with the current DA increase of 4%.

DA will be increased by 42 percent in March pay, and 2 months' worth of arrears from January and February 2023 will also be included.

After the DA raise, central government personnel can compute their compensation increase based on their basic pay and grade.

The formula used to calculate the dearness allowance hike of central government employees:

Dearness Allowance Hike Formula is - [(Average of All India Consumer Price Index AICPI) for the last 12 months - 115.76)/115.76]×100.

Formula for calculating DA hike of PSU personnel:

Dearness Allowance Percentage = [Average of Consumer Price Index for the last 3 months (Base Year 2001 = 100)-126.33)] x100