Salary increase up to 10%! Private employees happy with the recommendation of 7th Pay Commission

UPUKLive, 19 Oct 2024, New Delhi, 7th Pay Commission: On the occasion of festive season, great news is going to come for crores of private and government employees of the country. Now the salary of private employees is expected to increase by about Rs 6000. This increase is going to provide huge relief to the employees.

Under the 7th Pay Commission, it was already proposed to increase the basic salary of employees from Rs 15,000 to Rs 21,000, and now Union Minister Mansukh Mandaviya has given his consent to it.

Increase in basic salary from 7th Pay Commission will be a big benefit

Currently, employees get a basic salary of Rs 15,000, but under the new proposal it will be increased to Rs 21,000. If this proposal is approved, there will be a significant increase in the salaries of the employees. This decision is under work by the Finance Ministry, and is likely to be implemented soon. This increase in salary will benefit crores of employees across the country, especially private sector employees.

Decision on 7th Pay Commission may come soon

According to sources, the Finance Ministry is planning to increase the basic salary limit. The Labor Ministry has proposed that the salary limit be increased from Rs 15,000 to Rs 21,000. If this proposal is passed, it will also increase the pension and EPF contribution of the employees. It is noteworthy that the salary limit was Rs 15,000 since 2014, which can now be increased. However, no official announcement has been made yet on the date on which this decision will be taken.

Pension and EPF will also increase due to 7th Pay Commission

If the limit of basic salary is increased to Rs 21,000, it will have a direct impact on pension and EPF contribution. With this, employees will get more pension after retirement, and their savings will also increase. Along with this, more and more employees will be covered under this scheme, which will further strengthen their financial position. The government can take a final decision on this soon, which will provide huge benefits to private sector employees.

New wage code may be implemented

According to media reports, another big change can be seen before Diwali. A plan is also being made to change the working hours for private employees, in which it has been proposed to work four days a week and take leave for the remaining three days. 22 states have already approved the scheme, but some states are still not able to agree on it, due to which it is pending. Its implementation can improve the work-life balance of employees.

Employees will get a big gift due to 7th Pay Commission

Before Diwali, the government is also planning to increase DA (Dearness Allowance). The new rates of dearness allowance will be applicable from July 1, 2024, which is going to provide big benefits to government employees and pensioners. Employees will also get arrears from July to September 2024. Along with this, the Central Government has also announced Diwali bonus for the employees.

DA may increase by 3% to 4%

Currently central employees are getting 50% DA, and now it is expected to be increased from 3% to 4% DA. This will make the DA rate 53% or 54%. This increase is being made on the basis of AICPI (All India Consumer Price Index). With this decision, there will be a big increase in the salary and pension of government employees and pensioners.

How is dearness allowance calculated in 7th Pay Commission?

DA (Dearness Allowance) is determined on the basis of the average of AICPI (All India Consumer Price Index). It is calculated from the average of the last 12 months. This formula applies specifically to government employees, and DA is increased twice every year, in January and July.