New Delhi: If you are a Central government employee then there is a good news for you all as if we go with various media reports it is believed then there’s a possibility that around 50 lakh central government employees might get a pay hike under 7th pay commission before the festival of Diwali.

As we all know that the central government employees have been demanding a pay hike beyond the recommendations of the 7th CPC from past long time and with this news it expected that their wish is going to fulfill before this coming festival of lights.

Earlier, the Minister of State for Finance P. Radhakrishnan in Lok Sabha had said that the Narendra Modi’s government is not planning to give any hike in minimum basic salary beyond the recommendations of the seventh pay commission.

Currently, the Central government employees are getting basic pay according to the fitment formula of 2.57 of the basic pay and if this big step is taken, it will come as a massive news for the Central government employees.

Fitment factor is a figure used by 7th CPC with which the basic pay in 6th CPC regime (i.e Pay in Pay band + Grade pay) is multiplied in order to fix basic pay in revised pay structure (i.e 7th CPC). Fitment factor formulated by 7th CPC is 2.57.

Central government employees might get pay hike under 7th pay commission before Diwali:

Previously, an Reserve Bank of India (RBI) report had raised inflation concern over revised House Rent allowance (HRA) and experts feel that pay hike might not come, keeping in mind the rising inflation and RBI’s observations.

Meanwhile, the Modi government has made an announcement of two per cent hike in dearness allowance for central government employees and pensioners under the seventh pay commission.

With the new announcement the employees will now get 9 per cent DA based on their basic salary. The new DA will be implemented from July 1, 2018.

To elaborate it further, these employees will now witness an increase of Rs 350 to Rs 5,000 in their basic salary. DA has been calculated on the basic salary. Earlier, it was six per cent.

The impact on the exchequer on account of both DA and DR would be Rs 6,112.20 crore per annum and Rs 4,074.80 crore in the financial year 2018-19 (8 months from July, 2018 to February, 2019).