7th Pay Commission latest news today DA hike HIGHLIGHTS: Dearness Allowance gift for central government employees, pensioners announced

7th Pay Commission latest news today DA hike HIGHLIGHTS: In an announcement that is nothing short of a Diwali gift for nearly 52 lakh central government employees and about a similar number of pensioners, the Narendra Modi led central government has announced the Dearness Allowance (DA) and Dearness Relief (DR), which had been pending for weeks now. The Central Government announced 5 per cent DA, which is the highest in last three years. Till now, the central government employees were getting 12 per cent DA, which now will go up to 17 per cent after the inclusion of the H-2 2019 DA hike. In short, a central government employee's monthly salary would increase from Rs 900 to Rs 12,500 depending upon their grade pay and scale under 7th Pay Commission system.

5% DA hike was awaited

Speaking on the recent DA hike announced by the Central Government Harishankar Tiwari, Former Chairman of the AG Office Brotherhood, DA's Calculator, told Zee Business Digital that AICPI figures have increased between January and June 2019. The DA for June was 17.09% which is more than 5% as compared to December. That is why the government has increased it by this much.

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Change in 7th Pay Commission basic pay

Harishankar Tiwari went on to add that after DA is announced, the basic pay of employees is changed. He said that after the promotion of a government employee, his or her basic pay also gets changed. For such promoted employees, DA calculation is different. For example, suppose a government employee has served for 33 years. Then it is considered that he or she has got 33 promotions. In such a case, his or her DA would be decided on the basis of current basic pay — means award for serving the recruiter for longer period of time. Those government employees, who have served for 5 years, their basic pay would be Rs 20,300 and hence their DA would be announced on the basis of Rs 20,300.

DA hike impact on central government employees

Asked about the 5 per cent DA hike and its impact on various level government employees Tiwari gave the following details: Level 1 — Basic Pay Rs 18,000 — Hike Rs 900; Level 2 — Basic Pay Rs 19,900 — Hike Rs 995; Level 3 — Basic Pay Rs 21,700 — Hike Rs 1,085; Level 4 — Basic Pay Rs 25,500 — Hike Rs 1,275; and Level 5 — Basic Pay Rs 29,200 — Hike Rs 1,460.

Big relief for 62 lakh pensioners

The Dearness Relief (DR) hike ahead of the Diwali will come as a big relief to the 62 lakh pensioners of the Central Government employees. After 5 per cent DA announcement, the central government pensioner's DR will get increased by 5 per cent. According to experts, after the increase of 5 per cent DR in a central government employee pension, there will be an increase of Rs 450 to Rs 6,250 per month in a pensioner's monthly credit.

Pensioner's DR calculation

While calculating the DR impact on a central government's pensioner Hatishankar Tiwari said that minimum pension that a central government employee draws under 7th Pay Commission system is Rs 9,000. Such a pensioner will get Rs 450 increase in their pension. Similarly, post-7th Pay Commission's implementation maximum pension that a pensioner is drawing today is Rs 1.25 lakh per month. Those pensioners would get a pension hike of Rs 6,250 per month.

Four-month arrears benefit

Post-DA announcement, which was awaited since July 2019 as the Central Government announces DA twice in a year, the central government employees will get four month arrear as the monthly salary hike will become applicable from July 2019. Both central government employees and pensioners will get July, August, September and October arrear added in their monthly salary and pension when they will get their credit on 31st October 2019.