7th Pay Commission latest news: Cheer in Bihar, more anxiety for CG employees

New Delhi, Oct 25: In the news relating to the 7th Pay Commission, there is cheer for some employees and anxiety for others.

Two per cent DA hike for employees of the Bihar state government. On the other hand, a fitment factor for Central Government employees has been decided, but they would need to wait another month or two.

Cheer

The Bihar state cabinet increased the dearness allowance (DA) for its employee by two percent. DA would be given with effect from July 1 this year. Those government employees and pensioners who are getting revised pay scales are eligible for this hike and the government would bear an additional burden of Rs 419 crore annually for this hike.

Meanwhile in UP

In Uttar Pradesh, the state government employees are seeking to replace the new pension scheme with the old one. The employees have threaten to go on strike from October 25 (today) to October 27 amidst a threat by the government that their salaries would be cut.

TDS on 7th Pay Commission arrears

The Income Tax Department has instructed authorities to make sure that tax is deducted at source for the employee salary drawn together with the 7th Pay Commission arrears. While drawing the arrears on account of 7th Pay Commission, the Drawing and Disbursing Officers should take into account the arrear amount as well as the salary drawn by each employee during the financial year 2018-19. The income tax on the gross arrear amount now has to be worked out at the slab rate applicable to the particular employee and the amount of TDS deducted from the arrear amount, according to the circular. The balance net amount will have to be credited to the employees' GP Fund account. The instructions ask the concerned DDOs that the TDS amount may be deposited into Central Government Account within the due date, advising them to ensure deduction of TDS on the salary on average monthly basis is not restricted to the last quarter(s).

New fitment factor

Meanwhile for CG employees there may be some good news on its way relating to the 7th Pay Commission. Amidst all the protests, the government is said to have come to a conclusion regarding the fitment factor. The announcement of the new fitment factor could be made after December 11.