7th Pay Commission: Govt likely to announce 5% hike in dearness allowance; to reflect in October salaries
7th Pay Commission: Dearness Allowance, which is a cost of living adjustment allowance paid to government employees and pensioners to offset the impact of inflation, was increased to 12% in February with retrospective effect from January
7th Pay Commission: The central government employees, who were left disappointed by Finance Minister Nirmala Sitharaman's maiden Budget, are likely to receive a big bonanza ahead of the coming festive season. These employees were expecting a positive announcement on their long-pending demands of a hike in minimum pay and fitment factor beyond the recommendations of the 7th Central Pay Commission (CPC) in the Union Budget 2019, but to no avail. As compensation, the much-speculated 5 per cent hike in Dearness Allowance (DA) for the July-December 2019 period may now come through as an early Dussehra gift.
DA for the second half of 2019 is expected to increase to 17 per cent and the central government employees can expect this hike to reflect in their October 2019 salaries, Zee Business reported. If this comes to pass, it will be the biggest hike since the implementation of the 7th CPC recommendations in 2016. DA is a cost of living adjustment allowance - adjusted in line with inflation to compensate for price rise - that is calculated as a fixed percentage of a person's basic salary or pension. It is pegged to the All India Consumer Price Index (Industrial Workers). India, Pakistan and Bangladesh are reportedly the only countries where government employees are given such an allowance.