7th Pay Commission: Good News! Central govt employees likely to get pay hike up to Rs 21,000 post-budget 2020

7th Pay Commission: The central government employees are expected to get a big boost to their salaries post-budget 2020 which is going to be presented on 1st February 2020 in the Parliament. According to the report, the Centre may announce a 4 per cent hike in Dearness Allowance (DA) to staffers and pensioners.

The Central Government announcement of the DA hike will 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.

“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,” Harishankar Tiwari, Former President at AG Brotherhood told Zee Business.

“The Centre is expected to announce DA in early March 2020,” he added.

He also 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.

Tiwari said that after the DA announcement, central government employees’ Travel Allowance (TA) will also get increased by the same percentage points.

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.

A four per cent rise in DA for Level-1 employees means a minimum hike of Rs 720 up to Rs 10,000. Railway employees, in particular, may see a hike in salary, ranging from Rs 5000 up to Rs 21000, according to media report.

In January 2019, the government had raised the DA for government employees by 3%. Earlier, the Gujarat government had raised DA of its state government employees by 5 per cent.

The annual union budget 2020-21 will be presented by Finance Minister Nirmala Sitharaman in the Parliament on 1st February 2020.