New Delhi. The Center can give a wonderful gift to the government employees on the occasion of New Year. In fact, the government can once again increase the Dearness Allowance (DA Hike) by 3 percent for the employees under the 7th Pay Commission (7th Pay Commission). With this increase, the salary of government employees can increase by up to Rs 20,000. However, the employees are also waiting for the pending DA arrears of 18 months.
After the increase of 3 per cent in October and 11 per cent in July, the DA rate has gone up to 31 per cent. DA is an important part of the gross salary of government employees. After temporarily stopping DA in January and July 2020 and January 2021, the government increased DA for the first time in July 2021. Dearness Allowance helps government employees to maintain the standard of living and deal with inflation. Dearness Allowance is increased twice a year to adjust the inflation in the economy.
Modi government can increase the fitment factor
With inflation remaining high in recent years, rising prices of consumer products, employees are expecting the government to increase DA accordingly. Apart from increasing the DA, the central government is also considering increasing the fitment factor. The fitment factor decides the basic salary for all central government employees. The fitment factor was last increased in 2016, in which the minimum basic pay of employees was increased from Rs 6,000 to Rs 18,000. With a possible increase in the fitment factor, the basic pay could go up to Rs 26,000.
Why is dearness allowance given to government employees?
Dearness Allowance is a fixed part of the basic salary of the employee. To reduce the effect of inflation in the country, the government gives dearness allowance to its employees. It is extended from time to time. Pensioners get this benefit in the form of Dearness Relief.
