7th Pay Commission: Central Govt Employees May Get Salary Hike, Arrears On March 30

Central government employees under the 7th Pay Commission are expected to receive their increased salaries and arrears on March 30, a day ahead of schedule due to March 31 being a Sunday. The Reserve Bank of India (RBI) has instructed banks to operate on March 31, despite it being a Sunday, as it marks the last day of the financial year.

Monthly releases by the Labour Bureau's Consumer Price Index for Industrial Workers (CPI-IW) are the basis for calculating the dearness allowance (DA) for both employees and pensioners. Based on the recommendations of the 7th Central Pay Commission, the DA will be increased in accordance with the approved formula.

The government had previously approved a 4 percent rise in DA for central employees, effective from January 2024. This increase raised the allowance from 46 percent to 50 percent, entitling employees to arrears for January and February.

With the DA reaching 50 percent, there is also a corresponding increase in House Rent Allowance (HRA). Depending on the city's categorization, employees may receive up to 30 percent HRA.

Moreover, the DA hike triggers an increase in various special allowances for central employees, including childcare allowance, child education allowance, hostel subsidy, travel allowance on transfer, dress allowance, gratuity ceiling, and mileage allowance. However, employees are required to claim these allowances accordingly.

In October 2023, the Cabinet had previously increased the DA for government employees and Dearness Relief (DR) for pensioners by four percent. This increment raised the DA from 42 percent to 46 percent, benefiting 48.67 lakh central government employees and 67.95 lakh pensioners.

Furthermore, the government has authorised Diwali bonuses for paramilitary troops and Group C and non-gazetted Group B level officers. The Finance Ministry had imposed a cap of Rs 7,000 for the computation of non-productivity linked bonuses (ad hoc bonuses) for central government employees for the fiscal year 2022-2023.

The increase in DA and other allowances will provide relief to central government employees and pensioners, especially in the current economic scenario marked by inflation and rising prices. It is expected to boost their spending power and provide some financial stability in the face of increasing living costs.