Government employee's dearness allowance likely to hike in July, Minimum wage to rise up to Rs 26,000
It is speculated that the government may factor rising retail inflation into the DA amount for July 2022.
FollowLakhs of government employees may see an increase in their dearness allowance (DA) next month, in July 2022. The DA is made public twice a year, in January and July.
It is speculated that the government may factor rising retail inflation into the DA amount for July 2022.
DA announcements are typically made in March and September of each year. However, due to the Coronavirus pandemic, there was no increase or change in the DA amount for one and a half years after December 31, 2019.
Due to the Pandemic, the Finance Ministry halted the DA hike from January 2020 to June 30, 2021he DA hike was reinstated in July of last year.
Following that, DA for all Central Government employees was increased to 28 per cent from 17 per cent in July 2021, based on the recommendations of the 7th Pay Commission.
Later that year, in October 2021, DA was increased by more than three times, and the new amount became effective on July 1, 2021.
Because of these two increases, all government employees began receiving DA at 31 per cent on July 1, 2021.
Following that, on January 1, 2022, a three-time increase in DA was announced, after which government employees received DA at a 34 per cent rate.
Whatever increase the Central Government implements in DA will now take effect on July 1, 2022. All Central Government employees and pensioners will receive arrears beginning in July 2022 and continuing until the DA increase takes effect.
If this hike is repeated three times, based on the 7th Pay Commission's recommendations, on basic pay of Rs 18,000, there will be a Rs 540 increase in DA. If the basic pay is Rs 25,000, the DA hike will be Rs 750 per month, while those with Rs 50,000 will receive a DA hike of Rs 1,500 per month.
In addition to the DA increase, government employees this time may also see an increase in their basic pay with the inclusion of the fitment factor, as the government may soon approve an increase in the fitment factor.
Employees' unions have long demanded that the fitment factor be raised from 2.57 to 3.68.
If their demand is granted, the minimum wage or basic pay for Central Government employees will rise from 18,000 to 26,000.
Previously, in 2017, the government raised the entry-level salary. The basic salary had been raised from Rs 7,000 to Rs 18,000 at the time.
If the fitment factor is increased, Central Government employees may see a rise in their basic pay and an increase in their DA in July.
Know about the fitment factor:
The fitment factor is a figure used by the 7th Central Pay Commission (CPC) to multiply the basic pay in the 6th Central Pay Commission regime (Pay in Pay band + Grade pay) to determine basic pay in the revised pay structure (7th CPC).Â
The 7th Central Pay Commission calculated a fitment factor of 2.57. The employee's salary can rise significantly if the fitment factor is increased.
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