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Central government employees Expectations from Budget 2020

7th Pay Commission: Finance Minister Nirmala Sitharaman may announce some good news for central government employees during Budget 2020

During Budget 2020 presentation, Finance Minister Nirmala Sitharaman may announce some good news for central government employees – at least that is what all their expectations are riding on. According to the central government employees’ expectations, the Government may increase the minimum salary as recommended under the 7th CPC and modify the fitment factor of the central government employees.

The central government employees have been long demanding the minimum salary to be increased from Rs 18,000 to Rs 26,000. Apart from this, Central Government employees posted in Indian Railways are expecting from the government to provide medical and privilege pass facility to the dependent parents of these employees under the 7th Pay Commission proposals. Indian Railways employees are expecting their demand being met in the Budget 2020 when Nirmala Sitharaman presents the Budget 2020 on 1st February 2020.

Last year, Northern Railway Men’s Union had demanded from the Government to provide medical and privilege pass facility to the dependent parents of the Indian Railways employees under the 7th Pay Commission proposals. Currently, the Indian Railway employees’ mothers are entitled to these facilities when his or her father passes away. Till father is alive, the 7th Pay Commission proposal says that an Indian Railways employee wife is dependent on her husband and hence she is not entitled to the free medical and privilege pass facility. The 7th Pay Commission denies these facilities to the employee’s father, even when he is dependent on the Indian Railway employees.

Apart from this, the central government may also announce the H-1 Dearness Allowance (DA) that have become due in the new year 2020. The DA hike announcement may come as a relief to around 1.1 crore central government employees and pensioners. According to the expert’s calculation, the central government may announce 4 per cent DA for its employees leading to a rise in DA from existing 17 per cent to 21 per cent. The Central Government employees are expecting this DA hike once the budget 2020 is presented means from their perspective, the DA hike may come in the month of March 2020.

Elaborating upon the calculation behind the 4 per cent DA hike expectation Harishankar Tiwari, Former President at AG Brotherhood said, “In November, the Consumer Price Index (CPI) has hit 328 levels. No, the DA will go down below 4 per cent only when the CPI will improve by 12 points, which doesn’t look possible in the current inflation scenario.” Tiwari said that currently central government employees’ DA is at 17 per cent and after 4 per cent DA announcement, it will go up to 21 per cent citing, “The Centre is expected to announce DA in early March 2020.” Tiwari said that after the DA announcement, central government employees’ Travel Allowance (TA) will also get increased by the same percentage points. Tiwari said that if the DA of 4 per cent is announced, then Level-1 employees of the central government will get around Rs 720 hike in their monthly salary while the hike in their TA will be an additional benefit that central government employees’ will get.

Source: zeebiz

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