The long pending demand of the central government employees for a pay hike is likely to be met as the Narendra Modi government is considering an increase in their dearness allowance by next month. Although the employees have urged the government to increase their basic pay under the 7th Pay Commision, they may have to be content with a hike in the DAs. The measure comes ahead of the parliamentary elections, as a part of the several employee-friendly announcements by the BJP-led government at the centre.

National Joint Council of Action Chairman Shiv Gopal Mishra stated that the government is seriously considering an increase in the pay hike of central government employees and the proposal will be finalised by the union cabinet next month.

Modi govt's pro-employee measures to burden exchequer?

Even as the directive may come across as a vote-bank appeasement move, it will surely place a burden on the state exchequer. The central government last month changed the earned leaves rules of the employees and directed that they should avail 20 such leaves per year, to do away with the practice of paying cash for the leaves they did not avail at the end of their service tenure.

The government has also announced that lakhs of teachers posted at various technical institutions all over the country would also avail the benefits under the 7th Pay Commision, which will cost it Rs 1,241.78 crore annually. In addition, a string of measures have been lately announced by Modi government to benefit the low-income groups of the rural economy especially farmers and the those working in informal sectors.

Pradhan Mantri Shram Yogi Maandhan (PMSYM) and The PM-Kisan Samman Nidhi (PM-Kisan), which will provide monthly and yearly allowances to workers aged above 60 years and farmers, will put a burden of Rs 500 crore and Rs 75,000 crore on the state exchequer, respectively.