Central government clarifies eligibility conditions for civil servants - Detailed explanations provided herein
In the Lok Sabha, the Minister of State for Finance, Pankaj Chaudhary, clarified the rules regarding the annual increment for central government employees and the Dearness Allowance (DA).
The rule, as stated in Rule 10 of the Central Civil Services (Revised Pay) Rules, 2016, dictates that central employees will receive an increment only once a year, either on January 1 or July 1, regardless of any pay adjustments due to promotions or merging of grades. This rule applies even in cases where a senior employee's salary is made equal to that of a junior. In such instances, six months of service will not be considered sufficient for the next increment. A full year of service from the date of the previous increment is required.
Regarding the next annual increment, central employees who are promoted between January 2 and July 1 will receive their increment on January 1. Conversely, those promoted between July 2 and January 1 will receive their increment on July 1.
The DA, which currently stands at 55% after a 2% hike for the January-June 2025 cycle, is calculated based on the 12-month AICPI index (All India Consumer Price Index for Industrial Workers). The AICPI figures for June 2025 are out, and a 3% increase in DA is possible for the July-December 2025 cycle.
However, there has been no update on the timeline for the appointment of the chairman and members of the 8th Pay Commission. Central government employees are encouraged to understand their salary structure and the rules related to DA, MACP, and increment.
The government has emphasized adherence to the fixed increment dates rather than granting increments midway through the year based on pay equalization events. This clarification aims to ensure transparency and clarity in the salary structure for central government employees.
[1] Source: Lok Sabha Official Response, Date Unspecified.
- Amidst ongoing discussions in the personal-finance sphere, the Minister of State for Finance, Pankaj Chaudhary, shed light on the defi of the fixed increment dates for central government employees.
- The defi of the Dearness Allowance (DA) for central government employees is calculated based on the 12-month AICPI index and currently stands at 55%, with a possible 3% increase in the July-December 2025 cycle.
- As the market continues to watch for updates on the appointment of the chairman and members of the 8th Pay Commission, it's crucial for business owners and investors to understand the defi of salary structures and rules related to DA, MACP, and increment for central government employees.
