Central Government Employees Anticipate Pay Hike and Arrears on March 30: 7th Pay Commission Updates

Central government employees are eagerly awaiting potential salary increases and arrears, with reports suggesting that they might receive them on March 30, a day earlier than usual, due to March 31 falling on a Sunday. However, the Reserve Bank of India (RBI) has instructed banks to operate on March 31, despite it being a non-working day, as it marks the end of the financial year.

The increase in salaries is linked to the dearness allowance (DA) for employees and pensioners, calculated based on the latest Consumer Price Index for Industrial Workers (CPI-IW) data. The increment follows the accepted formula recommended by the 7th Central Pay Commission.

Earlier this year, the government approved a 4 percent rise in DA, effective from January 2024, bringing it up to 50 percent. This elevation in DA triggers corresponding increases in House Rent Allowance (HRA) and various special allowances, benefiting millions of central government employees and pensioners.

The last increase in DA occurred in October 2023, when it rose from 42 percent to 46 percent, benefiting nearly 49 lakh central government employees and over 67 lakh pensioners. Additionally, the government had approved Diwali bonuses for certain officials, setting a limit for non-productivity linked bonuses.

The anticipation of salary hikes and arrears reflects the government’s commitment to enhancing employee welfare, particularly during a challenging economic period.