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7th Pay Commission: Government employees may soon get pay hike

BusinessToday.In     February 7, 2019

Days after Shiv Gopal Mishra, the Chief of National Joint Council of Action (NJCA), said that the Narendra Modi government is serious about offering a hike in the salaries of the central government employees, it is widely speculated that they may soon get to hear good news in connection with the dearness allowance (DA) hike.

Given that a large section of central employees are not happy with the centre, the Narendra Modi-led BJP government may announce DA hike ahead of the 2019 polls and a decision in this regard will be taken this month, suggests media reports.

The CG employees, who are currently getting a minimum pay of Rs 18,000, have been demanding an increase of Rs 8,000 or an increase in the fitment factor by 3.68 times from the existing 2.57 times, according to report by OdishaTV.

With an eye on the 2019 parliament and state assembly elections, the government may announce a hike this month, but lower than what they are asking for, as per media reports.

Among others, bank officers and employees of various public sector banks are protesting over the pension proposals being made in the 7th Pay Commission. They are demanding to stop new pension scheme proposed in 7th Pay Commission and incept the older one.

In two major announcements under 7th Pay Commission, the Narendra Modi government has approved 300 per cent hike in the allowance for the central government employees handling cash and treasury and over 200 per cent increase in the running allowance for the railway employees.

Also Read: 7th Pay Commission: Modi govt approves proposal to extend benefits for teachers

Recently in the budget, Finance Minister Piyush Goyal on Friday announced full tax rebate to salaried class earning up to Rs 5 lakh from the current Rs 2.5 lakh, a move which is likely to provide relief in the face of rising cost of living and inflation.

Under new income tax slab, people who earn less than Rs 5 lakh annually, will get full tax rebate.

Also Read: RBI rate cut: If you have home loan of Rs 50 lakhs, your EMI may reduce by Rs 1,750

Even the Reserve Bank of India (RBI) Governor Shaktikanta Das in sixth bi-monthly monetary policy review on Thursday lowered the CPI inflation target for FY20, saying that the 7th Pay Commission's HRA allowance impact on the inflation indicator has diminished.

"Housing inflation continued to edge down as the impact of the house rent allowance (HRA) increase for central government employees dissipated," RBI said in its policy statement.

Edited by Chitranjan Kumar

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