Economy

7th Pay Commission – Centre Makes Major Announcement on Government Employees Monthly Basic Salary

According to rumours, central government employees will be rewarded with additional good news in the coming year, as their Dearness Allowance (DA) would be enhanced once more in January 2022.

As a result of the recent rise in Dearness Allowance and Dearness Relief, central government employees and retirees are getting wage raises. Some Central employees, on the other hand, are dissatisfied with the Centre’s recent declaration that their monthly basic income will not be enhanced.

According to Minister of State for Finance Pankaj Chaudhary, the central government is not considering such an increase in government employee compensation. He further noted that the fitment factor of 2.57 was introduced consistently for all categories of employees under the redesigned pay structure, based on the recommendations of the 7th Central Pay Commission.

The minister said this in answer to a query regarding whether the Centre is now actively exploring enhancing the monthly basic pay of employees after the reinstatement of dearness allowance and dearness relief as per the fitment factor based on the recommendations of the 7th Pay Commission.

Central government employees may be in for some good news in the coming year, according to sources, as their Dearness Allowance (DA) would be enhanced once again in January 2022, resulting in a hike in their compensation.

The amount by which the dearness allowance will grow in January 2022 is unknown, however the All India Consumer Price Index (AICPI) predicts a 3% increase.

According to industry experts, the dearness allowance could increase by 3% in January 2022. That is, with the 3% increase, total DA may jump from 31% to 34%.

Aside from that, reports say the Centre plans to increase the House Rent Allowance (HRA) for Central government employees in early January 2022. An official announcement is expected in this situation.

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