7th Pay Commission: Budget may not announce pay hike, but this good news likely

New Delhi, Jan 09: Ahead of the Union Budget there is talk that there would be some good news relating to the 7th Pay Commission.

There is a likelihood that the Union Finance Ministry would move a proposal to hike the Dearness Allowance for the Central Government employees. If this goes through, it would mean that the DA would be hiked by 4 per cent.

In the case of a 4 per cent increase, the DA would increase from 17 per cent to 21 per cent.

For the period January 2020 to June 2020, there could be a 4 per cent hike in the DA and this would be based on the 3 per cent spike in the inflation figures between July 2019 and June 2020.

Once the Central Government get this hike, their salaries could increase in the range of Rs 720 and Rs 10,000. The hike in the salaries is dependant on the pay drawn at the various levels.

The DA hike is announced twice a year. The announcement could be made between January 2020 and June 2020. The DA hike is announced on the basis of inflation in the previous half of the year. The DA hike is announced on the basis of the inflation from July to December in the previous year and January to June in the same year. If the government announces this hike in Dearness Allowance then it would come as a major relief for the CG employees who have been awaiting good news on the 7th Pay Commission.