7th Pay Commission Latest News: Central government employees are likely to receive a big gift from the Centre ahead of assembly elections in five states. According to media sources, the central government is considering increasing the fitment factor for employees. The base income will automatically increase if the fitting factor increases.
As per various media sources, with the increase in the fitment factor, central government employees' base compensation could be boosted to Rs 26,000 from Rs 18,000 previously.
Organization to Hold Meeting with Government Representatives
According to other reports, various organizations are preparing a meeting with government representatives in this topic, after which there is a potential of a significant increase in the minimum income of government employees.
Centre Planning To Increase Fitment Factor
It should be noted that the employees in the central and state governments have long demanded a raise in the fitment factor from 2.57% to 3.68%.
The Centre is known to be considering increasing the fitment factor for government employees.
Government employees should keep in mind that the fitment factor was last enhanced in 2016, when the minimum basic wage was hiked from Rs 6,000 to Rs 18,000.
Another important factor to remember is that if the basic pay increases from Rs 18,000 to Rs 26,000, the dearness allowance for government employees will increase as well. The Dearness Allowance is equal to 31% of Basic Pay, according to the calculations.
What is Fitment Factor?
The Central Government Employees must note that fitment factor, which increases the salary of the central employees by more than two & half times. According to the recommendations of the 7th Pay Commission, the salaries of the central government employees are determined by their basic salary & fitment factor in addition to the allowances.
