On Thursday, the Union Cabinet increased the dearness allowance (DA) for its 11 million employees and pensioners to 7 per cent, from 5 per cent, from January 1, 2018.
Maharshtra's finance Minister Sudhir Mungantiwar has tabled the state budget in the house today. While he made several announcements he also said the state would implement the Seventh Pay Commission once the commitee would submit its report.
He said that the implementations would be with effect from January 2016.
State Finance Minister Sudhir Mungantiwar has informed the state Legislative Council that regarding this decision. He also added that the move will put a burden of Rs 21,500 crore on the state exchequer.
On Thursday, the Union Cabinet increased the dearness allowance (DA) for its 11 million employees and pensioners to 7 per cent, from 5 per cent, from January 1, 2018.
"The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners from January 1, 2018 representing an increase of 2 per cent over the existing rate of 5 per cent of the Basic Pay/Pension, to compensate for price rise," an official statement said.
According to the statement, the hike will benefit about 48.41 lakh central government employees and 61.17 lakh pensioners.
It said that the combined impact on the exchequer on account of both DA and DR would be Rs 6,077.72 crore per annum, and Rs 7,090.68 crore in 2018-19 (for a period of 14 months from January, 2018 to February, 2019).
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission, it added.
The government employees, who receive salaries from pay matrix level 1 to 5, are expected to receive hike in minimum pay scale to Rs 21,000 from Rs 18,000 from April 1, 2018. These employees will reportedly see an increase in their fitment factor from 2.57 times to 3.00 times of the basic pay of 6th Pay Commission. An official told the newspaper that FM Jaitley will prefer to pick and choose lower-level employees and pay hike accordingly rather than salary hike for middle-level employees.
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 "7th pay commission: Maharashtra to implememt recommendations effective from January 2016")
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