From DA to HRA hike, here’s looking at 5 big updates for govt employees
Under the 7th Pay Commission, central government employees are hoping to hear soon from the Centre about dearness allowance (DA) and dearness relief (DR) arrears, hike in DA/DR, and housing rental allowance (HRA), among other issues.
While the government hasn’t officially announced much, it is expected that the official updates could come soon, especially with the Budget session 2022 ongoing. Meanwhile, several state governments have also announced big salary hikes for their employees.
5 Big Updates every government employee must know:
1. Fitment factor to be hiked to 3.68?
The Indian government is soon expected to announce a hike in the fitment factor of central and state employees. A hike in the fitment factor will push the minimum wages of central employees higher, according to media reports. Several employees unions have been asking the government to increase the fitment factor be raised from 2.57 times to 3.68 times.
2. Arrears of Rs 2 lakh to be given in one go?
According to media reports, the Union Cabinet is expected to discuss the matter on the pending DA arrears. A Zee Hindi report, quoting Shiv Gopal Mishra of the National Council of JCM, had pointed out that certain employees could receive DA arrears of up to Rs 2 lakh in one go if the government decides to pay arrears.
3. Hike in basic pay
If the government increase the fitment factor from 2.57 times to 3.68 times, the basic salary of the central government employees will also increase. In such as case, the minimum pay will increase from Rs 18,000 to Rs 26,000.
4. DA increase to 34%
The dearness allowance of central government employees could increase by an additional 3% to 34%. According to media reports, the government could make an official statement anytime before Holi.
5. Himachal Pradesh announces DA hike
Himachal Pradesh chief minister Jai Ram Thakur, on January 31 (Himachal Pradesh Statehood Day), announced a 31 per cent dearness allowance (DA) for the state government employees. Also Read: RBI to observe financial literacy week during February 14-18 He said: "My government had recently announced a new pay scale, which will benefit 2,25,000 employees while putting a monetary burden of Rs 6,000 crore to the state exchequer.