7th Pay Commission latest update: Government employees to get New Year Bonanza soon? THESE allowances may hike

Today is the 24th day of the new year. As the new year of 2023 has just begun, government employees have high hopes this year. This is all that the government is planning to do in response to the employee unions' demands.

According to the AICPI data, the Dearness Allowance of government employees is hiked twice a year - January and July. Now, as per the inflation graph, it seems that central employees' dearness allowance (DA Hike) may grow by up to 3 percent in the ongoing year.

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There is also a matter of DA arrears of employees from January 2020 to June 2021 which is not issued by the government yet. The unions of employees are continually demanding the government release the arrears. Now, as per the latest update, the government might be soon deciding on pending arrears of 18 months.

There is also a concern regarding increasing the fitment factor. Reports earlier suggested that the government may give this as a New Year bonanza.

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Now, as per the latest update, the government is planning to increase the fitment factor after Budget 2023. The current rate of fitment factor is about 2.6 percent and employees are demanding the government increase it to 3.7 percent. 

If this is done, there will be a huge rise in the salary of the personnel. Experts state that after the hike, the basic pay will go to Rs 26,000 from Rs 18,000. For the uninformed, the government increased the fitment factor last time in 2016.