Central government employees currently receive a 3% annual increment under the 7 th Pay Commission. In their recommendations to the 8 th Pay Commission, employee groups have asked for a significant increase in this 3% increment. They argue that a 3% annual salary hike is insufficient as the basic salary doesn’t even double over a decade. These employee groups are pushing for an at least 5% hike annually.
They argue that a 5% annual raise, along with merging the dearness allowance (DA) with basic pay once the DA hits 25%, could substantially boost the salaries of the central government employees.