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7th Pay Commission latest news today: This is how pay benefits changed after DA hike announcement

ZeeBiz WebTeam | Oct 11, 2019, 03:32 PM IST

7th Pay Commission latest news today: It has been pending for many weeks, but the announcement occurred ahead of Diwali, doubling the celebration spirit of over one crore central government employees as well as pensioners, who have been waiting for the same since the festive season began. The Central government announced 5 per cent DA, which is the highest in last three years and this would boost a central government employee's monthly salary from Rs 900 to Rs 12,500 according to their grade pay and scale under the 7th Pay Commission recommendations. Along with this DA hike, the central government has also increased Transport Allowance (TA) of its staff, thereby, increasing monthly salary by Rs 810 to Rs 4,320. Here are other key developments related to 7th Pay Commission benefits and other boosts provided to central government employees.

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7th Pay Commission DA Hike

7th Pay Commission DA Hike

With 5 per cent Dearness Allowance (DA) announcement, nearly 52 lakh central government employees and about a similar number of pensioners would receive the highest benefit under this in the last three years. Till now, the central government employees were getting 12 per cent DA, which now will go up to 17 per cent after H-2 2019 DA hike inclusion. Thus, a central employees' monthly salary would increase from Rs 900 to Rs 12,500 depending upon their grade pay and scale under 7th Pay Commission system. Notably, the DA for June was 17.09% which is more than 5% as compared to December. Image source: Reuters

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7th Pay Commission basic pay

7th Pay Commission basic pay

According to reports, the basic pay of employees will change after the recent DA hike announcement. After the promotion of a government employee, his or her basic pay also gets changed, and for such promoted employees, DA calculation is different. Suppose a government employee has served for 33 years, then it is considered that he or she has got 33 promotions. Thus, his or her DA would be decided on the basis of current basic pay. While in case of those employees, who have served for 5 years, their basic pay would be Rs 20,300 and hence their DA would be announced on the basis of Rs 20,300. Image source: Reuters

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7th Pay Commission DA hike and DR calculation

7th Pay Commission DA hike and DR calculation

With the 5 per cent DA hike and its impact on various level government employees, the changes in the salary of these employees would be like this: Level 1 — Basic Pay Rs 18,000 — Hike Rs 900; Level 2 — Basic Pay Rs 19,900 — Hike Rs 995; Level 3 — Basic Pay Rs 21,700 — Hike Rs 1,085; Level 4 — Basic Pay Rs 25,500 — Hike Rs 1,275; and Level 5 — Basic Pay Rs 29,200 — Hike Rs 1,460.

If we look at DR (dearness relief) impact on a central government's pensioner, minimum pension that a central government employee draws under 7th Pay Commission system is Rs 9,000. Such a pensioner will get Rs 450 increase in their pension. Similarly, post-7th Pay Commission's implementation maximum pension that a pensioner is drawing is Rs 1.25 lakh per month, and such pensioners would get a hike of Rs 6,250 per month. Image source: Reuters

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7th Pay Commission arrears benefit

7th Pay Commission arrears benefit

The central government employees should know that after this DA announcement, they will get four months arrears as the monthly salary hike will become applicable from July 2019. Both central government employees as well as pensioners will get arrears for July, August, September and October months added in their monthly salary and pension when they will get that amount credited on 31st October 2019. Image source: Pixabay

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7th Pay Commission TA hike

7th Pay Commission TA hike

The central government employees have not only been given Diwali gift with the DA hike, but they also got another benefit. Their Transport Allowance (TA) has also been increased, pushing their monthly salary up by Rs 810 to Rs 4,320. This increased TA will automatically be added into the monthly salary of the central government employees as TA hike and DA hike are inter-connected. Notably, minimum TA for urban cities under 7th CPC is Rs 1350, while maximum TA under the 7th Pay Commission is Rs 7,200. In smaller cities, TA approved under the 7th Pay Commission ranges between Rs 900 and Rs 3,600 per month. Image source: Reuters

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7th Pay Commission TA calculation

7th Pay Commission TA calculation

According to the central government norms, DA has gone up by 5 per cent in tier-1 cities, hence, this will also go up by 5 per cent means the approved TA of Rs 7200 in tier-1 cities is Rs 360. Therefore, a government employee's salary go up by Rs 4,320 in a year, following the 5 per cent DA hike announcement. Similarly, TA in other cities will also go up after the rise in DA of the central government employees. Image source: Reuters