7th Pay Commission: Speculations Rife of 4% DA Hike For Central Government Employees, Announcement Likely in Budget 2020

The speculations gain credence as several state governments have announced a DA, as well as dearness relief (DR) hike for their employees and pensioners, respectively. The latest to enact the move was Himachal Pradesh, where both the key allowance has been raised by 5 percent. Earlier, the governments of Odisha and Gujarat announced a 5 percent hike for the employees.

Image used for representational purpose | (Photo Credits: PTI)

New Delhi, January 28: Nearly 50 lakh central government employees are looking forward to the rollout of Union Budget 2020-21, as speculations are rife that the dearness allowance (DA) could be raised by upto 4 percent. The move, if implemented, would lead to a salary hike of Rs 720 to Rs 10,000, based on the pay drawn by the respective class and ranks of employees. Jammu and Kashmir, Ladakh Employees to Get Allowances of 7th Pay Commission.

The Finance Ministry officials are yet to issue an official announcement on whether a DA hike is in consideration. However, reports have confirmed that the government is considering the move to placate the employees amid rising inflation.

The speculations gain credence as several state governments have announced a DA, as well as dearness relief (DR) hike for their employees and pensioners, respectively. The latest to enact the move was Himachal Pradesh, where both the key allowance has been raised by 5 percent. Earlier, the governments of Odisha and Gujarat announced a 5 percent hike for the employees, in accordance to the 7th Pay Commission recommendations.

The DA granted to central government employees currently stands at 17 percent. This would be raised to 21 percent if the speculated hike is implemented by the Finance Ministry. The increment in allowance is also expected to placate the demand raised by employees unions, seeking a hike in minimum wage from Rs 18,000 to Rs 26,000.

(The above story first appeared on LatestLY on Jan 28, 2020 05:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).

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