Cabinet Approves 2% DA Hike Amid Growing Pay Restructuring Demands
Cabinet clears 2% DA hike as pay demands build ahead of 8th Pay Commission
The Economic Times
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The Indian Cabinet has approved a 2% increase in Dearness Allowance (DA) for central government employees, responding to rising demands for pay restructuring ahead of the proposed 8th Pay Commission. Employee unions are advocating for a significant increase in the minimum pay from ₹18,000 to ₹69,000.
- 01The Cabinet approved a 2% DA increase for central government employees.
- 02Employee unions are pushing for major pay restructuring under the 8th Pay Commission.
- 03The National Council–Joint Consultative Machinery (NC-JCM) proposed a fitment factor of 3.83.
- 04If accepted, the minimum basic pay could rise from ₹18,000 to ₹69,000.
- 05The decision reflects growing pressure from employee unions for better compensation.
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On Saturday, the Indian Cabinet approved a 2% increase in Dearness Allowance (DA) for central government employees, a move that provides a modest salary boost. This decision comes amid increasing demands for comprehensive pay restructuring as the proposed 8th Pay Commission approaches. The National Council–Joint Consultative Machinery (NC-JCM) has submitted a memorandum advocating for a higher fitment factor of 3.83. If the government's acceptance of this proposal occurs, it could elevate the minimum basic pay from ₹18,000 (approximately $220 USD) to ₹69,000 (approximately $840 USD), significantly altering the overall pay structure for government employees. This development highlights the mounting pressure from employee unions seeking better compensation and working conditions.
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The DA hike will slightly increase the salaries of central government employees, but the proposed changes under the 8th Pay Commission could lead to a significant rise in minimum pay, benefiting many workers.
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