pay hike
Representative photo. Image credit - www.indiatvnews.com

The central government employees are likely to get a pay hike after the budget 2020.

According to reports, the central government may announce a 4 percent hike in the Dearness Allowance (DA)  of its employees and the pensioners after the budget.

The budget 2020 is scheduled to be presented in the Parliament by union finance minister Nirmala Sitharaman on February 1.

The 4 percent rise will lead to the rise in the DA from the existing 17 pc to 21 pc.

The DA hike will bring smiles to around 1.1 crore central government employees and pensioners.

According to expert, the central government may announce 4 percent DA for its employees leading to a rise in DA from existing 17 percent to 21 percent.

A media report quoted Harishankar Tiwari, a former president of AG Brotherhood, as saying: “In November, the Consumer Price Index (CPI) has hit 328 levels.”

“Now, the DA will go down below 4 percent only when the CPI will improve by 12 points, which doesn’t look possible in the current inflation scenario,” said Tiwari.

He also said the Centre is expected to announce DA before March this year.

Tiwari informed that currently the central government employees enjoy DA at 17 pc and after 4 pc increase in the DA, it will rise up to 21 pc.

He further said after the DA announcement, the Travel Allowance (TA) of the central government employees will also get increased by the same percentage points.

The NDA government may increase the minimum salary as recommended under the 7th Central Pay Commission (CPC) and modify the fitment factor of the central government employees in budget 2020.

The central government employees have been demanding that their minimum salary be increased to Rs 26,000 from the existing Rs 18,000.

While a Level-1 central government employee’s minimum basic salary is Rs 18,000, for the Cabinet Secretary level employees’ basic salary is Rs 2.5 lakh.

A 4 pc rise in DA for Level-1 employees means a minimum hike of Rs 720 up to Rs 10,000.

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