7th Pay Commission: No hike in minimum pay, No change in fitment factor and No change in retirement age

There was a bitter disappointment in store for fifty lakh Central government employees and an equal number of retirees, who have been waiting for a hike in minimum pay and fitment factor beyond the 7th Pay Commission recommendations. There was lot of speculation that PM Narendra Modi may give some good news in his last Independence Day budget in this term as PM. Many believed that looking at good monsoon and positive economic factors, a positive announcement may come months before the general elections. 

Earlier declared by staffnews Click to view: Increase of fitment factor from 2.57 to 3.68 under 7th CPC - Latest official statement before PM's Independence Day speech

While PM Modi spoke about how Indian economy will be a powerhouse in next three decades, he didn't have any news to offer for the government employees. 

Minister of State for Finance P. Radhakrishnan earlier in Lok Sabha had said that the Prime Minister's Narendra Modi government is not planning to give any hike in minimum basic salary beyond the recommendations of the seventh pay commission. However, the Haryana government approved pay scale recommendations of teaching and non-teachings staff at government universities, government universities and govt-aided colleges with effect from Jan 1,2016.

The Maha government also has announced a salary hike under 7th Pay Commission from January 2019 for 17 lakh state employees. . So obviously the Central government employees are also hoping for some positive news. It may be noted that the government at any time can announce such a decision, and it doesn't need to be on a special day. It may come closer in the heels to the election. 

It is to be noted though that in the hopes of minimum pay hike beyond the recommendations of the 7th CPC might get a blow from the Central Bank itself. Earlier this month, RBI decided to increase the policy repo rate by 25 basis points to 6.5%. The reverse repo rate has been hiked to 6.25%, the RBI announced after its three-day Monetary Policy Committee (MPC) meeting.

"RBI's Monetary Policy Committee has decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.5% Consequently, the reverse repo rate under the LAF stands adjusted to 6.25% and marginal standing facility rate and Bank Rate to 6.75%," the apex bank said in a statement. 

RBI in its report mentioned that inflation rates have increased on account of implementation of 7th Pay Commission. The revised HRA structure came into place in July 2017 under the 7th Pay Commission.

Currently, the Central government employees are getting basic pay according to the fitment formula of 2.57 of the basic pay and if this big step is taken, it will come as a massive news for the Central government employees. Fitment factor is a figure used by 7th CPC with which the basic pay in 6th CPC regime (i.e Pay in Pay band + Grade pay) is multiplied in order to fix basic pay in revised pay structure (i.e 7th CPC). Fitment factor formulated by 7th CPC is 2.57.

There were talks about Modi raising the retirement age of central government employees. That also didn't come through

HAPPY INDEPENDENCE DAY

Increase of fitment factor from 2.57 to 3.68 under 7th CPC - Latest official statement before PM's Independence Day speech

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

RAJYA SABHA

UNSTARRED QUESTION NO-2273

ANSWERED ON-07.08.2018

Increase of fitment factor under 7th CPC

2273 . Shri Ravi Prakash Verma

Shri Neeraj Shekhar

(a) whether Government is contemplating to increase fitment factor from 2.57 to 3.68 under 7th CPC to all pay levels, as demanded by employees associations;

(b) if so, the details thereof and by when it would be announced; and

(c) if not, the reasons for betrayal from assurances given by Home Minister and Railway Minister etc. to employees associations in 2016?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI P. RADHAKRISHNAN)

(a) to (c): The Minimum Pay of Rs. 18,000 p.m. and Fitment Factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration.

Dearness Relief to re-employed Ex-servicemen/pensioners – PCDA Clarification

Office of the Principal Controller of Defence Accounts (Pension),

Draupadi Ghat, Allahabad-211014

Circular No.179 

Date:12.05.2015

Sub: Payment of Dearness Relief to re employed pensioner: Clarification thereof.

As per para l(a) of MOD letter No. 7(1)/95/D(Pen/Services) dated 28.8.2000, entire pension admissible to ex-servicemen who held post below commissioned officers (PBOR) at the time of retirement, is ignored and their pay on re-employment is to be fixed at the minimum of the pay scale of the post in which they are re-employed. Such pensioners will consequently be entitled to dearness relief on their pension.

Deptt. of Pension and Pensioners Welfare, vide their UO No.41/42/2007/P&PW(G) dt. 03.04.2008, reproduced under this office circular No. 386 dt. 19.06.2008, further clarified that if the pay is fixed at a higher stage because of advance increments and no protection of last pay drawn is given, the pay should be treated as fixed at a minimum only for the purpose of ignoring the entire pension and allowing dearness relief on pension. For availing this benefit the ex-servicemen would have retired at post below commissioned officers Rank (PBOR) before attaining the age of 55 years.

Now representations from the banks, where number of ex-clarify the elements to be taken into account for assessing the last pay drawn by the ex-servicemen for the purpose of last pay protection.

The dearness relief on re-employment should be regulated by the Pension Disbursing Agencies on the basis of certificate issued by re-employer, clearly stating whether benefit of last pay protection has been given or not. However, on examination of cases submitted by the banks it has been found that pay scale in banks are still on old pattern, whereas ex-servicemen have been retired with Pay in Pay Band, Grade Pay, MSP, Group Pay etc. In such cases it is clarified that for the purpose of assessing the last pay drawn for last pay protection, the elements to be taken into account should be last pay in pay band i.e. Band Pay plus Grade Pay, last drawn before retirement as envisaged vide MOP, PG & P, DOPT OM NO. 3/19/2009 Estt. Pay II dt. 8th Nov 2010 and no other elements should be taken for this purpose.

In view of the above, it is advised that all the cases of dearness relief where pay of ex-servicemen has been fixed at a higher stage because of advance increments may be reviewed and regulated accordingly.

No. AT/Tech/263-XVIII 

Date 12.05.2015

(A.D. Mishra)

Asst.CDA (P)

Source: www.pcdapension.nic.in

[http://pcdapension.nic.in/6cpc/Circular-179.pdf]

Benefit of reservation to Ex-servicemen, who applies for various examinations/vacancies before joining civil posts

No.36034/1/2014-Estt.(Res.)

Government of India

Ministry of Personnel, Pubic Grievances and Pensions

Department of Personnel and Training

North Block, New Delhi

Dated the 14th August, 2014

OFFICE MEMORANDUM

Sub: Benefit of reservation to Ex-servicemen, who applies for various examinations/vacancies before joining civil posts/ services in the Government job on civil side.

In terms of this Department’s Notification No.39016/10/79-Estt(C) dated 15th December, 1979 as amended from time to time and which was last amended vide Notification No. 36034/1/2006-Estt (Res) dated 4th October, 2012, the benefit of reservation to ex-servicemen is available at ten per cent of the vacancies in Group C posts and twenty per cent of the vacancies in Group D posts in all the Central Civil Services and posts. Benefit of reservation is also extended at ten per cent of the vacancies in the posts upto of the level of Assistant Commandant in all para-military forces to be filled by direct recruitment.

2. Vide this Department’s O.M. No. 36034/27/84-Estt.(SCT) dated 02.05.1985, it was decided that once an ex-serviceman has joined the Government job on civil side after availing of the benefits given to him as an ex-serviceman for his re-employment, his ex-serviceman status for the purpose of re-employment in Government would cease. It was also decided that on his joining the civil employment, he would be deemed to be a civil employee and would accordingly be entitled to only such of the benefits like relaxation of age etc. as admissible to civil employees in the normal course. Vide this Department’s O.M. No. 36034/21/87-Estt.(SCT) dated 07.11.1989, it was clarified that the instructions of 02.05.1985 shall not apply to those ex-servicemen who have been re-employed or are re-employed by private companies/autonomous bodies/ public sector undertakings/ government offices on casual/contract/temporary ad-hoc basis and who can be removed from such service at any time by their employer concerned.

3. An ex-serviceman at the time of his release or discharge from the armed forces normally applies for more than one vacancy, but in case he/she joins any civil employment due to early declaration of results/selection, he/she is ,not entitled for the benefit of reservation for ex-servicemen for subsequent employment. It has been brought to the notice of this Department that the aforesaid instructions are affecting the chances of ex-servicemen in the case of direct recruitment for subsequent suitable employment.

4. The matter has, therefore, been considered in consultation with Department of Ex-servicemen, Ministry of Defence. It has now been decided that if an ex-serviceman applies for various vacancies before joining any civil employment, he/she can avail of the benefit of reservation as ex-serviceman for any subsequent employment. However, to avail of this benefit, an ex-serviceman as soon as he/she joins any civil employment, should give self-declaration/undertaking to the concerned employer about the date-wise details of application for various vacancies for which he/she had applied for before joining the initial civil employment. Further, this benefit wou’d be available only in respect of vacancies which are filled on direct recruitment and wherever reservation is applicable to the ex-servicemen.

5.The above Orders shall take effect from the date of issue of this Office Memorandum.

6.All the Ministries/Departments are requested to bring the above instructions to the notice of all appointing authorities under their control, for information and compliance.

sd/-

(G. Srinivasan)

Deputy Secretary to the Government of India

Source: www.persmin.gov.in

Pay Fixation of Re-Employed Ex-Servicemen vs retired Gp A officer on re-employment: Clarification

GOVERNMENT OF INDIA

MINISTRY OF DEFENCE

OFFICE OF THE PRINCIPAL CONTROLLER OF ACCOUNTS (FYS)

10-A, S.K. BOSE ROAD, KOLKATA: 700001

No: Pay/Tech-l/069/XVII

Dated: 02/08/2018 

Sub: Pay fixation of re-employed Ex-Servicemen 

Ref: HQ office letter No.AT/II/2455-VI dated 06.07.2018 

Kindly find, enclosed, HQ office letter quoted under reference on the above subject alongwith its enclosure. 

It has been inferred in Para 5 of the aforesaid letter that the provisions of Para 8(iii) of DoP&T OM No 3/3/2016-Estt (Pay-II) dated 01.05.2017 and hence Para 3(v) of DoP&T OM No 3/19/2009-Estt (Pay II) dated 05.04.2010, which is analogical to para 8(iii) of OM No 3/3/2016-Estt (Pay-II) dated 01.05.2017, are applicable only for the pay fixation of retired Gr A officers on re-employment and not for the pay fixation of PBORs on re-employment in civil posts. Accordingly, pay fixation of persons who retired as PBOR and got re-employed in civil posts, in the revised structure of 6th CPC is to be regulated as per the provisions laid down in para 4(b)(i), 4(b)(ii) read with para 4(d) of DoP&T OM No 3/19/2009-Estt (Pay II) dated 05.04.2010. 

Affected cases may be dealt with accordingly. 

PC of A (Fys) has seen. 

Sd/- 

Dy Controller of Accounts(Fys) 

Source: Click here to view/download the PDF

RAJYA SABHA QUESTION ON OROP

Confirm 9% DA from July 2018:

DA from July, 2018 is confirmed to be 9% in 7th CPC & 148% in 6th CPC pay structure with 2% increase in 7th CPC DA & 6% increase in 6th CPC DA after releasing of June, 2018 All India Consumer Price (Industrial Workers) Index Number [CPI(IW)].

Employees who are in revised 7th CPC pay structure will get 9% Dearness Allowance from the month of January, 2018 and employees who are in pre-revised 6th CPC pay structure will get 148% Dearness Allowance from the month of July, 2018.  The revised Dearness Allowance for the second half of the year may be approved by the Govt in the month of September, 2018 as per previous trend. Monthly Dearness Allowance and Transport Allowance will enhanced from this increase in DA and pensioners will also be benefited by this increase.

DA from July, 2018 calculated to be 9% in 7th CPC & 148% in 6th CPC pay structure as per  AICPIN of June-2018released.

MAIL FROM MAJ GEN SATBIR SINGH

  28 Jul 2018

Dear Friends,

1.             Video on SC Hearing on 27^th Jul2018, Govt misleading the Nation on OROP recorded by NDTV India on 27^th Jul 2018 but covered very small portion at 9 PM is enclosed for information and wide circulation please.

2.             We will file a strong rejoinder to Govt assertion on OROP in SC within two weeks.

3.             We will continue our struggle to get Respect, Justice and Status to Soldiers.

4.             You are aware that other deprived Sections of Society Jawan, Kisan & Dalit have joined together to raise “Haq, Ki Awaj” a peaceful Andolan across the Country with effect from 09 Aug 2018.  People for write-up regarding People for Responsible Government is enclosed herewith.  Though we will execute our individual movements, we will support each other.

5.             Other deprived Sections ie Youth, Women and labourers have also shown interest to join “Haq Ki Awaj”.

6.         You are also aware that SC has allowed Protests at Jantar Mantar and Boat Club.  Delhi Police is framing the guidelines.

7.         Another important issue is use of Power of Votes to ensure Defence Personnel are taken seriously.  Supreme Court in its judgement has stated that serving defence personnel are allowed to become voters at the place of Posting.  ESM at various cantonments and Military Station are requested to meet local commanders and Station Commanders to inform them about the contents of SC Judgement for action please.

8.         We will continue our struggle at Jantar Mantar and at other loications across the Country.  All ESM and volunteers of our families are requested to join and intensify the struggle till our Mission of Restoration of respect; Justice and Status is accomplished.  Implementation of actual OROP being our fist objective.  All are requested to visit Jantar Mantar regularly as was done when we started the Protest Movement on 15 June 2015

With regards,                                

Maj Gen Satbir Singh, SM (Retd)                                                         

Advisor United Front of Ex Servicemen &                                                                                        

Chairman Indian Ex-Servicemen Movement (IESM)                                                                          

Mobile: 9312404269, 01244110570                                                  

Email:satbirsm@gmail.com 

One Rank One Pension: Govt says No to Annual Revision of Pensionary Benefits

New Delhi: The Central government on Friday told the Supreme Court that it will not revise the formula for One Rank-One Pension (OROP) scheme nor would it bring down the timeline for periodical revision of the pensionary benefits for retired armed forces personnel. Appearing before a bench headed by Chief Justice of India Dipak Misra, Additional Solicitor General Maninder Singh made the government's stand clear in response to a PIL. "We will not revise the OROP formula. The government has already gone out of its way," Singh submitted. The law officer added that whatever has to be decided by the government has already been done. "More than Rs 10, 000 crore has been sanctioned after much deliberation. This has huge ramifications on the exchequer and any interference would further burden us," Singh told the Court. The ASG sought dismissal of the petition by Indian Ex-servicemen Movement also on the ground that there is a limited scope of reviewing a policy decision. "This petition is not maintainable because it seeks to challenge a policy decision," said Singh. Representing the petitioner, senior advocate Vivek Tankha replied that he is ready to argue on both maintainability and merits of his plea.
The Court then asked Singh to file a formal affidavit in reply to the petition and fixed the matter for hearing after four weeks. The Indian Ex-servicemen Movement (IESM) and others have challenged the government’s policy of periodic review of pension once in five years. It has sought a direction for the government to implement OROP as recommended by the Koshyari Committee with an automatic annual revision, instead of the current policy of periodic review once in five years. “OROP is the uniform desire of all three defence services. Ex-servicemen are presently drawing pension that is not consistent with their rank and/or length of service... the pension of past pensioners be automatically and contemporaneously enhanced, whenever there is any future increase or enhancement in the rates of pension,” said the petition. It added the government should be directed to fix the pension on the basis of highest pension of financial year 2014-15 and not 2013.

MACP FROM 01/01/2006 ORDER

‘Complete ban’ on holding protests at Jantar Mantar unacceptable: Supreme Court

The apex court asked the government to lay down guidelines for granting permission to hold protests in Jantar Mantar and Boat Club near India Gate.

The Supreme Court on Monday said there cannot be a “complete ban” on holding protests at Jantar Mantar in New Delhi, and asked the government to lay down guidelines for granting permission to protesters.
A bench comprising Justices A K Sikri and Ashok Bhushan said there was a need for striking a balance between conflicting rights such as right to protest and right of citizens to live peacefully.  “There cannot be a complete ban on holding protests at places like Jantar Mantar and Boat Club (near India Gate),” the bench said while directing the Centre to frame guidelines on the matter.
The bench was hearing a batch of petitions, including the one filed by Mazdoor Kisan Shakti Sanghtan challenging the decision of the National Green Tribunal, which had banned all kinds of protests at these (Jantar Mantar, Boat Club) places.
The National Green Tribunal last year banned all forms of protests at the venue, saying they violated environmental laws. The green panel said it was the duty of the state to protect its people from noise pollution. A bench headed by Justice R S Rathore ordered the New Delhi Municipal Council (NDMC) to remove all make-shift structures, loudspeakers and other protest paraphernalia along the road stretch leading to Jantar Mantar. It identified Ramlila Grounds in Ajmeri Gate as an alternative site for agitators holding dharnas.  According to North body officials, only one organisation can hold an event at any given time at Ramlila Maidan.
Jantar Mantar has been the site of many famous protests — including Anna Hazare’s anti-corruption movement, Babri Masjid demolition protests and the Tamil Nadu farmers’ protest.

Delay in payment of pension to Defence Pensioners/Family Pensioners by PDA

Delay in payment of pension to Defence Pensioners/Family Pensioners by the Pension Disbursing Agencies 

0/0 the principal Controller of Defence Accounts (Pensions) 

Draupadighat Allahabad – 211 014 

Circular No. 203 

No. AT/Tech/342-III 

Dated: 17/07/2018 

To 

1. The Chief Accountant, RBI Deptt. of Govt. Bank Accounts, Central office C-7, Second Floor, Bandre- Kurla Complex, P B No. 8143, Bandre East, Mumbai-400051 
2. The Director of Treasuries of all State 
3. The Manager CPPC of Public Sector Banks including IDBI 
4. The CDA (PD) Meerut 
5. The CDA, Chennai 
6. The Nodal Officers (ICICl/AXIS/HDFC Bank) 
7. The Pay 85 Accounts Officer 
8. The Military. 85 Air Attache, Indian Embassy, Kathmandu, Nepal 
9. The D.P.D 0 
10. Post Master, Kathua (J 85 K) and Camp Bell Bay 

Sub: Delay in payment of pension to Defence Pensioners/Family Pensioners by the Pension Disbursing Agencies. 

The payment of pension to Defence (including Defence civilian) pensioners/family pensioners is disbursed by Pension Disbursing Agencies (PDAs) as per instructions contained in Defence Pension Payment Instructions (DPPI), 2013. Any other order issued by the Government affecting in disbursement of pension are also supplied to the PDAs through circulars for timely & correct implementation. 

However, some of the issues have been highlighted in the 30th Standing Committee of Voluntary Agencies (SCOVA) meeting held on 23/03/2018 under the chairmanship of Hon’ble Minister of State (PP) and accordingly our HQrs office i.e. CGDA, New Delhi has instructed to this office to issue suitable guidelines on the following issues to the PDAs disbursing Defence (including Defence civilian) pensioners/family pensioners. 

1. Delay in commencement of family pension to spouse on death of pensioners: It has been decided in the SCOVA meeting that family pension should commence within one month of the receipt of death certificate in respect of the deceased pensioner and other required certificates as stated in DPPI, 2013. Therefore, you are advised to make sure that the families of the deceased pensioners get the family pension in time and an acknowledgement is invariably given by the PDAs to the family member on receipt of the death certificate of the deceased pensioner and application for commencement of family pension. 

2. Timely (i) Restoration of commuted pension and (ii) Commencement of Additional Pension on attaining the age of 80 years : In the SCOVA meeting it has been pointed out that commuted amount of pension is not being restored after deduction of 15 years. It has also been pointed that the additional pension on attaining the age of 80 years of age and above is not being started when it is due. Necessary guidelines in the matter has already been issued vide this office Circular No.165 dated 22/02/2013 and Circular No.191 dated 23/03/2017. therefore, you are advised to take necessary action accordingly. 

3. Item wise details of payment made to be shown in the pass books of pensioners: This office Circular No.128 dated 13-07-2007 and Circular No.184 dated 06-06-2016 regarding issue of pension slip to Defence pensioners/family pensioners has already been circulated to all the PDAs to issue pension Slip to all the Armed forces personnel/Defence civilian pensioners including family pensioners at the commencement of pension and thereafter whenever there is a change in the quantum of pension. Now, it has been decided in the SCOVA meeting that item wise details of payment made to the pensioners to be shown in the pass books of the pensioners. The same has already been implemented by the SBI to some extent. Therefore, you are advised to take necessary action accordingly in the matter. 

(Sandeep Thankur) 

Addl. CDA (Pensions) 

Source: Click here to view/download the PDF

Delinking of Qualifying Service of 33 years w.e.f. 01.01.2006 - Restoration of pension in respect of Defence Personnel i.r.o. PSU/CAB absorbed : PCDA Circular 602

OFFICE OF THE PR. CONTROLLER OF DEFENCE ACCOUNTS (PENSIONS) 

DRAUPADI GHAT, ALLAHABAD- 211014 

Circular No. 602 

Dated: 10.07.2018 

To, 

1. The Chief Accountant, RBI, Deptt. Of Govt, Bank Accounts, Central Office C-7, Second Floor, Bandre- Kuria Complex, P B No. 8143, Bandre East Mumbai-400051 

2. All CMDs, Public Sector Banks. 

3. The Nodal Officers, ICICl/HDFC/AXIS/IDBI Banks 

4. All Managers, CPPCs 

5. Military and Air Attache, Indian Embassy, Kathmandu, Nepal 

6. The PCDA (WC), Chandigarh 

7. The CDA (PD), Meerut 

8. The CDA, Chennai 

9. The Director of Treasury, All States 

10. The Pay and Accounts Officer, Delhi Administration, R K Puram and Tis Hazari, New Delhi. 

11. The Pay and Accounts Office, Govt of Maharashtra, Mumbai 

12. The Post Master Kathua (J&K), Camp Bell Bay. 

13. The Principal Pay and Accounts Officer Andaman and Nicobar Administration Port Blair. 

Subject :- Restoration of pension in respect of Defence Service Personnel who had drawn lump sum payment on absorption in Public Sector Undertakings/ Autonomous Bodies-delinking of qualifying service of 33 years for revised pension with effect from 01.01.2006. 

Reference:- This office Circular No. 568 dated 13.10.2016 and Circular No. 592 dated 05.12.2017. 

A Copy of Govt. of India, Ministry of Defence, Deptt of ESW letter No. 1(04)/2007/D(Pen/Pol) dated 20.06.2018 on the above subject, which is self explanatory, is forwarded herewith for your information, guidance and necessary action. 

2. In terms of GoI, MoD letter No. 1(2)/2016-D(Pen/Pol) dated 30.09.2016, revised consolidated pension and family pension of pre-2006 Armed Forces pensioners w.e.f. 1.1.2006 shall not be lower than 50 % and 30% respectively of the minimum of the pay in the pay band plus grade pay corresponding to the pre-revised scale from which the pensioner had retired/ discharged/ invalided out/ died including Military Service Pay and “X” Group pay, if any, without pro rata reduction of pension even if they had rendered qualifying service of less than 33 years at the time of retirement. 

3. Now it has been decided by the Government that while determining the revised pension of above said category of absorbee pensioners/family pensioners with effect from 1.1.2006, the pension/ family pension shall also be revised in accordance with the provisions contained in the GoI, MoD letter No. 1(2)/2016-D(Pen/Pol) dated 30.09.2016 referred above. 

4. The pension in terms of this order will be revised by the respective Pension Sanctioning Authorities Suo-moto by issuing Corrigendum PPOs in all affected cases. No application in this regard shall be called for either from the pensioners or from the PDAs concerned. Further, PDAs would also brought into notice of PSAs, such left out cases, if any, for revision of pension. 

5. All other terms and conditions shall remain unchanged. 

6. This circular has been uploaded on PCDA (P) website www.pcdapension.nic.in. 

(Sushil Kumar Singh) 

Jt. CDA(P) 

Source: Click here to view/download the PDF

DA CALCULATION METHOD TO BE MODIFIED

New Delhi: The central government is set to modify the index and base year for calculating Dearness allowance (DA), a move that may result in another type of DA will be given to 4.9 million central government employees and 6.1 million pensioners, the labour ministry sources said.

New series of CPI-IW, which will be used for determining D.A. According to the sources, the labour ministry is re-working the consumer price index (CPI-W) that is used to determine DA and the labour bureau under the ministry has finalised the new CPI-IW with base year 2016.
The sources further said that the base year is proposed to be revised in every six years so that it captures the change in living expenses more accurately.
The base year of the current CPI-IW is 2001 and it was last changed in 2006 by the Sixth Central Pay Commission. Prior to that, the base year was 1982.
DA is an increment paid as a percentage of basic salary to employees to adjust their salary to reflect the change in the cost of living.

The proposed index will include addition of new industrial centres to make price gauze more representative, taking total number of industrial centres under consideration to 88 against 78 now. Additionally, various new items are being added to the list, including cars and mobiles, to cover the change in lifestyle of industrial workers and employees over the last 15 years, the sources said.
The new index will soon go to the technical advisory committee for vetting, after which it will go to the national tripartite consultation before it is finalised, the sources said.
The labour bureau had taken approvals from standing tripartite committee at all stages of development of the index, the official further added.
The Union Cabinet increased DA to 7 percent from 5 percent effective January 2018. The revision done in March was based on the recommendations of the 7th Pay Commission and had benefited the central government employees and the pensioners.
Now, with the latest revision in Dearness Allowance (DA), central government employees can witness further increase in their compensation.