It’s a massive undertaking and shake-up for Central government employees. Another big news regarding central government employees of India is coming soon. In Diwali preparation, the government plans to launch the largest exercise that aims at raising the basic wage of employees by up to 20%. This decision is also made to continue to contain inflation while enhancing the quality of life of more than 50 lakh central govt employees.
Expected Salary Increase
It has now emerged that this salary hike is expected to be effected by the government before the festival of the lights – Diwali. The increase could raise the salaries at Level 1 up to ₹34,560 from the current ₹32,920, and the Level 18 could be up to ₹4.8 lakhs from ₹4,42,480. It is expected that this increase is likely to give a big boost to those employees that may have to deal with higher costs of living.
Creation of the 8th pay commission
It has introduced seven Pay Commissions in India till now out of which 7th Pay Commission has been formed on February 28, 2014. Preparations for the 8th Pay Commission are now on in Washington and the talks ongoing now.
The formation of the 8th Pay Commission could directly favour about 12 lakhs employees and pensioners of the country to ensure that they get a proper wages due to them.
An analysis of the Dearness Allowance (DA)
Next to salary increments, government employees get an increase on Dearness Allowance (DA) thrice a year. The DA is typically adjusted in January and July while an employee gets a salary increase only once within one fiscal year.
What this means is that there are employees who were given increment in January will not be given another increment in July and vice versa.
Impact of DA Increases
The DA adjustments in an attempt to ensure that the employees cater for inflations. As cost of living goes up, then these are important in ensuring that the purchasing power of employees is not eroded. The DA is component of the salary package and it is a thing that employees greatly anticipated to alleviate the financial pressure.
