7th Pay Commission latest news: Up to Rs 10,000 salary hike expected post-budget 2020; Big boost for central government employees

7th Pay Commission latest news: Central government employees may get a big salary hike post-budget 2020 (#BUDGET2020ZEE) that is going to be presented on 1st February 2020 in the Parliament. After 28th April 2020, the Central Government is expected to announce Dearness Allowance (DA) for the Central Government Employees that may come as a relief to around 1.1 crore central government employees and pensioners. According to the expert's calculation, the central government may announce 4 per cent DA for its employees leading to a rise in DA from existing 17 per cent to 21 per cent.

Elaborating upon the calculation behind the 4 per cent DA hike expectation Harishankar Tiwari, Former President at AG Brotherhood said, "In November, the Consumer Price Indes (CPI) has hit 328 levels. Now, the DA will go down below 4 per cent only when the CPI will improve by 12 points, which doesn't look possible in the current inflation scenario." Tiwari said that currently central government employees' DA is at 17 per cent and after 4 per cent DA announcement, it will go up to 21 per cent citing, "The Centre is expected to announce DA in early March 2020." Tiwari said that after the DA announcement, central government employees' Travel Allowance (TA) will also get increased by the same percentage points.

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If the DA of 4 per cent is announced, then Level-1 employees of the central government will get around Rs 720 hike in their monthly salary while hike in their TA will be an additional benefit that a central government employees' will get, said Tiwari adding, "Cabinet Secretary level employees' monthly salary hike will go to the tune of Rs 10,000." He said that for Level-1 central government employees minimum basic salary is Rs 18,000 while for the Cabinet Secretary levels employees' basic salary is Rs 2.5 lakh.

Recently, the Gujarat Government has announced 5 per cent DA for its employees that put both central government employees DA and Gujarat State Government employees' DA at par means at 17 per cent. This Gujarat Government's decision will benefit around 9.61 lakh Gujarat State Government Employees while the Madhya Pradesh Government may also announce the DA hike by the same percentage points to match the Gujarat Government. If the Kamalnath Government in Madhya Pradesh does that, then it would aid around 10 lakh state government employees of MP.