New Delhi, July 13: Central government employees, who receive salary and allowances as per the 7th Pay Commission recommendations, can hope for a fat increase in their monthly gross basic pay after the government restores full benefits of dearness allowance or DA. Fitment factor, fixed at 2.57 while implementing the 7th Pay Commission, and data from the All India Consumer Price Index (AICPI) will be deciding factors. 7th Pay Commission Latest News Update: Wait Gets Longer, Pending DA and DR Payment Likely in September.

Under the 7th Pay Commission, central government employees currently get 17 percent DA. Once the government restores full benefits of DA, central government employees will get 28 percent. It is because the government had last year approved a 4 percent increase in DA, effective from January 1, 2020. In addition, there was an increase of 3 percent in June 2020 and in January 2021, the dearness allowance was raised by 4 percent. 7th Pay Commission Latest News Update: Announcement on DA Hike for Central Govt Employees May Get Delayed Due to COVID-19, Says Report.

How Much Raise Is Expected?

A big hike is likely in salary and allowances of the central government employees post DA-restoration. "If we look at the 7th CPC fitment factor that has been fixed at 2.57 while implementing the seventh pay commission, an employee's monthly basic salary and monthly contribution like Provident Fund (PF), gratuity, etc. are expected to rise," Shiv Gopal Mishra, who negotiated the 7th Pay Commission recommendations with the Centre on behalf employees, told Mint last month.

According to a report by DNA, the DA is calculated as per this formula; 1- For Central government employees: DA per cent = {(Average of AICPI (Base Year -2001=100) for the past 12 months -115.76)/115.76} x 100, 2- For central public sector employees: DA per cent = {(Average of AICPI (Base Year 2001=100) for the past 3 months -126.33)/126.33} x 100. Notably, there is no official confirmation concerning date for DA restoration.

(The above story first appeared on LatestLY on Jul 13, 2021 05:36 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website