Annual Increment for Central Government Employees

Annual Increment for Central Government Employees


Last week, the Central Government has issued orders regarding the release of an additional 6% Dearness Allowance to the central government employees and 6% Dearness Relief to the pensioners from 1st January 2015. It turned out to be a sigh of relief for all of them as the government was a bit late in announcing the DA. Now the total DA stands at 113% of the basic pay. The employees will be paid arrears for the months of January, February and March. As for now, expectations and excitement are temporarily over….


The next episode to begin is the Annual Increment, which has to be given in the month of July every year as recommended by the 6th Central Pay Commission. From July, central government employees are entitled to receive 3% of their basic pay as annual increment. As we are aware that 6th CPC had given more financial benefits than previous pay commissions, by introducing various changes in the pay structures and pay scales. The calculations regarding annual increment were also changed. In the past, the annual increment was a fixed amount and was given on the appointment month every year. But in the 6th CPC, the annual increment was fixed at 3% of the basic pay and that to be given on a common date for all central government employees irrespective of their appointment date. It also clarified that, any amount which falls between 1 and 10 rupees, the total should be rounded to the next 10 rupees. For eg: If an employee’s increment is Rs. 401.00, the fixation should be Rs.410.00, while for an employee, who gets Rs. 400.90, the fixation should be Rs.400.00 only. This increment is automatically added to their basic pay every year.


As far as the employees are concerned, this year’s annual increment will be the last in this particular pay commission. July also makes the date for announcing the next installment of DA to the employees. As per the data received till now, and the trend regarding price index, continues, another 6% of DA is expected from July 2015. This makes the total DA at 119%.


From the employees point of view, they are eagerly awaits the recommendations of the 7th CPC which has to be implemented from the 1st of January 2016. But till now, a crystal clear picture has not emerged about the new pay scales and pay structures, and the date of submission to the government. Nobody is in a position to come out with the details of the 7th CPC.

Let’s wait and see what happens in the coming months!!!



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