7th pay commission: Modi government may announce DA hike on March 16? Read latest updates

Media reports say that the big decision on DA hike could infact come before Holi itself.

New Delhi: 7th pay commission latest update --The dearness allowance of central government employees could increase by an additional 3% to 34%. According to previous media reports, the government was to make an official statement any time before Holi. 

However a fresh report in Zeebiz is stating that a big decision on the same could infact come on March 16 i.e before Holi itself.

Based on the AICPI Index year 2001, in the Consumer Price Index for Industrial Workers, there has been a decrease of one point in the index for December 2021. With this, the index has gone up to 361 points. The 12-month index average for dearness allowance stands at 351.33. So, based on this average index, the Dearness allowance stands at 34.04%. But since dearness allowance is calculated in round figure only, a total of 34% dearness allowance is what the central government might be getting for payment starting January 2022.

The central employees are also waiting for the Modi government to announce a hike in the fitment factor which will in turn push the minimum wages of central employees higher. The central government employees unions have long been demanding for hiking  minimum pay of Rs 18,000 to Rs 26,000 and fitment factor be raised from 2.57 times to 3.68 times. According to media reports, the fitment factor of central employees can be decided soon. This means that there will be a big increase in the basic salary of the government employees.

If the government makes announcement regarding the hike in fitment factor of central employees, then their salary will consequently increase. In fact, with the increase in fitment factor, the minimum wage will also increase. Employees are currently getting salary under fitment factor on the basis of 2.57 percent, which if increased to 3.68 percent, there will be an increase of Rs 8,000 in the minimum salary of the employees. This means the minimum pay of the central government employees will be hiked from Rs 18,000 to Rs 26,000.