The hike in salary is being awaited by the employees of the Central Government which is likely to come in the upcoming months. The government of Narendra Modi will be increasing the basic pay of the low-level officials under the 7th Central Pay Commission. This move is also going to include all the officials lying under the pay matrix level of 1 to 5. Currently, the minimum basic pay under the 7th pay commission of the low-level officials is Rs. 18,000. The fitment factor will be revised by the Modi government from 2.57 times to 3 times as mentioned in the 7th Pay Commission.
By increasing this fitment factor, the present minimum basic pay will also rise from Rs. 18,000 to Rs. 21,000. The cabinet also approved to increase the Dearness Relief for all the central government employees which led to 1.10 Crore central government staff as well as pensioners to receive 7 percent of their basic pay as the dearness allowance instead of 5 percent. This rise was put into effect from 1st January 2018. This rise in the Dearness Allowance, as well as Dearness Relief, is likely to benefit 48.41 Lakh central government employees and 61.17 Lakh pensioners.
This increase in the Dearness allowance and Dearness relief was approved by the cabinet according to the formula which was put forth by the 7th Central Pay Commission. This rise in the Dearness allowance and Dearness relief is going to put a burden of Rs. 6077.72 Crore additionally in the 14-month period from January 2018 to February 2019. The Union Cabinet also approved the recommendations of the 7th Pay Commission in June 2017 for the central government employees after introducing 34 modifications. An additional burden of Rs. 30,748 Crore has been put on the exchequer. All these changes were put into effect starting from 1st July 2017.