In a major relief to Central Government employees awaiting good news on the 7th Pay Commission, the Union Cabinet hiked the dearness allowance and dearness relief by 2 per cent. The move would benefit pensioners as well. The hike would be effective from January 2018, an official statement said.
"The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to release an additional instalment of dearness allowance (DA) to Central government employees and dearness relief (DR) to pensioners...representing an increase of 2 per cent over the existing rate of 5 per cent of the basic pay/pension, to compensate for price rise," the statement said.
The impact on the exchequer on account of both DA and DR will be Rs 6077.72 crore per annum and Rs 7090.68 crore in the financial year 2018-19, from January this year to February, 2019. The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
While in some quarters it has been indicated that the pay hike may be delayed in others, it is being stated that it may not come at all. Other sources indicate that the government may go in for a review only next year.
7th Pay Commission
While the DA hike comes as some very good news, there is still no word on the salary hike. While some government sources say that they are trying to work on something as it concerns lakhs of employees in other quarters it is being said for now it has been put on hold.