Previously, an RBI report had raised inflation concern over revised House Rent allowance (HRA) and experts feel that pay hike might not come, keeping in mind the rising inflation and RBI's observations.
7th pay commission: If various media reports are to be believed then there's a possibility that around 50 lakh central government employees might get a pay hike before the festival of Diwali. The central government employeeshave been demanding a pay hike beyond the recommendations of the 7th CPC.
Earlier, the Minister of State for Finance P. Radhakrishnan in Lok Sabha had said that the Narendra Modi's government is not planning to give any hike in minimum basic salary beyond the recommendations of the seventh pay commission.
Currently, the Central government employees are getting basic pay according to the fitment formula of 2.57 of the basic pay and if this big step is taken, it will come as a massive news for the Central government employees. Fitment factor is a figure used by 7th CPC with which the basic pay in 6th CPC regime (i.e Pay in Pay band + Grade pay) is multiplied in order to fix basic pay in revised pay structure (i.e 7th CPC). Fitment factor formulated by 7th CPC is 2.57.
Previously, an RBI report had raised inflation concern over revised House Rent allowance (HRA) and experts feel that pay hike might not come, keeping in mind the rising inflation and RBI's observations.
Meanwhile, the Modi government has made an announcement of two per cent hike in dearness allowance for central government employees and pensioners under the seventh pay commission.
With the new announcement the employees will now get 9 per cent DA based on their basic salary. The new DA will be implemented from July 1, 2018.
To elaborate it further, these employees will now witness an increase of Rs 350 to Rs 5,000 in their basic salary. DA has been calculated on the basic salary. Earlier, it was six per cent. The impact on the exchequer on account of both DA and DR would be Rs 6,112.20 crore per annum and Rs 4,074.80 crore in the financial year 2018-19 (8 months from July, 2018 to February, 2019).
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 "7th pay commission: Pay hike to come before Diwali?")
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