Salary Hike: New Announcements on Salary Hikes and Benefits for Government Employees

Salary Hike: There are indications of a major overhaul in the salary structure for government employees. Recent discussions in Parliament have revealed that the salary, Dearness Allowance (DA), and other benefits for central government employees are expected to increase soon. It is anticipated that these changes will not be limited to the central level but will also impact the salary structures of state government employees and teachers.
The Center of Discussion
In response to questions raised in Parliament, the government has stated that a ‘Terms of Reference’ document, containing various employee demands, has been submitted by the Joint Consultative Machinery (JCM). The process of forming the next pay commission may begin based on these demands.
What are the Key Demands of the Employees?
- Salary Determination: A proposal has been made to use a specific formula to determine the new salary structure.
- Pay-Level Merger: There is a demand to merge multiple pay levels, such as Level 1, 2, 3, etc., into a new, consolidated structure.
- Promotional Benefits: A demand has been raised to consider the Modified Assured Career Progression (MACP) as a promotional grade pay.
- Benefits for Pensioners: A strong demand has been made to reduce the pension commutation restoration period from 15 years to 12 years.
- Old Pension Scheme: There is a call to abolish the Contributory Pension Scheme (NPS) and reinstate the Old Pension Scheme (OPS).
- Other Allowances: Demands have also been made to increase medical facilities and the Children’s Education Allowance (currently ₹33,750). Additionally, the JCM is advocating for the reinstatement of various allowances that were previously discontinued.
The Government’s Steps
The government has received all these demands and has reportedly informed various stakeholders, including state governments, about these matters. Although a final decision has not yet been announced, these discussions clearly indicate a potential increase in the salary and other benefits for government employees. It is hoped that an official announcement will be made soon, which will positively impact the lives of millions of government employees.