7th Pay Commission: UP govt may declare a 4% DA Hike for employees. Here's what we know

7th Pay commission: Chief Minister Yogi Adityanath-led Uttar Pradesh government is anticipated to unveil a significant package for its 15 lakh employees and 8 lakh pensioners prior to Diwali by increasing the dearness allowance (DA) by 4 percent. In addition, reports suggest that the state government might also declare bonuses for non-gazetted employees. It has been reported that the Chief Minister Yogi Adityanath-led administration will make a decision following the central government's announcement regarding the hike in DA, which is expected to occur in the final week of September or the initial week of October.

The DA hike announced by the Uttar Pradesh government is projected to bring benefits to around eight lakh state government employees. This decision is estimated to impose an additional burden of Rs 3,000 crore on the state exchequer.

Additionally, non-gazetted employees are anticipated to receive a bonus, which will be determined based on their basic salary and DA components. In the previous year, employees were allocated a bonus amounting to nearly Rs 7,000. It is predicted that the bonus for this year will see a slight increase compared to the previous year's amount.

8th Pay Commission

The 7th Pay Commission, established in February 2014, was constituted to review and modify the compensation structure for government employees. Following its inception, the recommendations put forth by the commission were enforced starting from January 1, 2016. It is a customary practice for the Central Government to convene a pay commission every decade with the primary objective of reassessing and revising the salaries and allowances of government personnel.

The establishment of the 8th Pay Commission is anticipated for the year 2026, pending an official announcement from the government. Forecasts indicate a prospective salary augmentation ranging between 20% to 35%, potentially elevating Level 1 remunerations to approximately Rs 34,560 and escalating Level 18 compensations to as high as Rs 4.8 lakh.

In addition, there are promising developments for employees and pensioners, with anticipated enhancements in retirement benefits and adjustments to various allowances. Furthermore, indications suggest the utilization of a fitment factor of 1.92 in formulating the pay matrix for the forthcoming 8th Pay Commission.