7th Pay Commission: After DA hike, is Centre planning to raise monthly gross basic pay of Central govt employees too?

After giving good news to Central government employees of giving them 28% Dearness Allowance (DA) from July 1, now the Central government has also given a blow to the employees. In a new update, the government said that no consideration will be given to increase the monthly basic salary of central employees.

The government says no increase in basic salary is being considered

On July 28 i.e. today, Pankaj Chaudhary, Minister of Finance (India), in a written reply said that the Central government is not considering any such scheme. The written reply also made it clear that the fitment factor of 2.57 was implemented uniformly for all categories of employees only for the purpose of fixation of pay in the revised pay structure based on the recommendations of the 7th Central Pay Commission. 

This came to light when the Minister of Finance was answering a question in Parliament. He was asked whether the Central government is considering increasing the monthly basic pay of the employees after the restoration of Dearness Allowance and Dearness Relief as per the fitment factor on the basis of the recommendations of the 7th Pay Commission. 

Increased salary will be received in September

It is important to note that Central employees are currently receiving 17% DA at the moment. However, from July 1, it has been increased to 28%. This dearness allowance will come in the salary for the month of September. DA was increased by 4 percent in January 2020, then by 3 percent in June 2020, and by 4 percent in January 2021. According to the data of AICPI, there is going to be a 3% increase in Dearness Allowance in June 2021 under the 7th Pay Commission. If this happens, then the total DA will increase to 31%.

House Rent Allowance also increased in addition to DA

Along with Dearness Allowance, the government has also ordered to increase the House Rent Allowance (HRA) of Central employees. Since July 1, the Dearness Allowance has increased to 28%, so it is necessary to revise the HRA as well.