7th Pay Commission: New Updates on 4% DA Hike, 18-Month Arrears, and Fitment Factor

Employees of the central government may rejoice in the forthcoming month of August since they will probably receive many big surprises from the central government. There may be good news on this front for the central government staff. The Dearness Allowance for employees could increase by 4%.

By doing so, the current DA of 34% will increase to a total of 38%. The hike is nearly finalized. The All-India Consumer Price Index for Industrial Workers (AICPI-IW) data for May will serve as the basis for the DA rise.

The figures for June 2022 have not yet been released. The results will be announced on July 31, 2022. There will be more clarity regarding the hike after this. The decision in this matter can be made during the cabinet meeting that is set for the first week of August.

Updates on the 18 Months DA Arrears:

There is also a probability that the government will decide something regarding the 18-month arrear that is unpaid till now. Arrears on the DA for the time frame of January 2020 to June 2021 were frozen by the government.

The union representing central government employees has been calling for the release of the arrears ever since the administration announced a freeze on Dearness Allowance arrears due to the Covid-19 epidemic.

Since the stuck sum is sizable, the pensioners have actually written to Prime Minister Narendra Modi requesting him to release their Dearness Relief (DR). According to the union, the government must reach a negotiated agreement. There may be an announcement made regarding this at the meeting.

Updates on Fitment Factor Hike:

The state and federal government employees have demanded to increase fitment factor from the present 2.57 times to 3.68 times. The Cabinet Secretary may have this conversation towards the end of August. The workers in the central govt could benefit greatly if this happens. There will be an increase of Rs 8000 if the fitment factor is raised.

Updates on the 8^th Pay Commission:

Employees of the Central Government are paid in accordance with the 7th Central Pay Commission's recommendations. According to the central government employees, their incomes fall short of what the 7th Pay Commission has recommended.

The current minimum basic wage is Rs. 18000. A significant aspect of this is the fitment factor. The fitment factor hike for state and federal government employees has been demanded to be hiked from the present 2.57 times to 3.68 times. The minimum basic wage will increase from Rs. 18000 to Rs. 26,000 if this hike takes effect.