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7th Pay Commission, latest news today: Why the DA increase is a signal that salaries would increase

By Vicky Nanjappa
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    New Delhi, Aug 30: For those waiting for good news on the 7th Pay Commission, their hopes were raised considerably on Wednesday.

    7th Pay Commission, latest news today: Why the DA increase is a signal that salaries would increase

    In a much deserved relief, the Union Cabinet approved a 2 per cent increase in the Dearness Allowance. The hike will be implemented with retrospective effect from July 2018. The increase was in accordance with the recommendations of the 7th Pay Commission.

    This is good news for the CG employees as they would now get a 9 per cent increase in DA against the earlier 7 per cent. It may be recalled that in March the Union Cabinet had increased the DA from 5 per cent to 7 per cent.

    Also Read | 7th Pay Commission latest news today: Good news, DA hiked by another 2 pc for CG employees

    Analysts say that this increase suggests that the government is addressing this issue in a phased manner. It is not taking a sudden decision as it also realises the financial implications of a knee jerk reaction. Sources however confirm that all issues relating to the 7th Pay Commission would be resolved soon and more good news would come in January 2019.

    With Arun Jaitley back in charge, it was expected that this issue would move forward.

    OneIndia had reported that once Jaitley is back as the finance minister, various issues relating to the CG employees would move forward. Wednesday's Cabinet meeting and decision is proof of this.

    Sources say that hopes should not be lost as the government would address each issue in a phased manner. CG employees have been demanding a hike beyond the Rs 18,000 which was fixed by the 7th Pay Commission.

    The Cabinet note:

    The Union Cabinet, chaired by the Prime Minister Shri Narendra Modihas approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2018 representing an increase of 2% over the existing rate of 7% of the Basic Pay/Pension, to compensate for price rise.

    Also Read | 7th Pay Commission: Good news for these employees, CG employees still in limbo

    The combined impact on the exchequer on account of both Dearness Allowance and Deamess Relief would be Rs.6112.20 crore per annum and Rs.4074.80 crore in the financial year 2018-19 (for a period of 08 months from July, 2018 to February, 2019).

    This will benefit about 48.41 lakh Central Government employees and 62.03 lakh pensioners.

    This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Pay Commission.

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