7th Pay Commission News: The budget session of Parliament will be underway on January 31. The fitment factor of the salary of central government employees is reportedly subject to revision by the Centre. It must be noted that the fitment factor currently stands at 2.57 times.
The Centre has come under pressure from the government's workforce to increase the fitment factor to 3.68. If this happens, the wage would rise from Rs 18,000 to Rs 26,000.
Government employees contend that the basic salary should also grow because the compensation increases on this basis, even after the increase in DA. According to earlier reports, the central government is also expected to raise the dearness allowance (DA) for government employees beginning on January 1 in March 2023.
Minimum Salary After the Probable Hike in Fitment Factor:
If the government raises the fitment factor three times, the employee’s base pay, excluding benefits, will be 18,000 X 2.57, or Rs. 46,260. In addition, if the employees' requests are granted, the salary will be 26000 X 3.68, or Rs 95,680. The pay will be Rs 63,000 if the government accepts a three-times fitment factor, or Rs 21,000.
Government Hikes DA by 4% to 38%:
According to the percentage increase in the 12 monthly average of the All India Consumer Price Index for the period ending June 2022, the Union Cabinet had approved the release of an additional installment of Dearness Allowance and Dearness Relief @4 percent to Central Government employees and pensioners due from July 1, 2022.
Beginning on July 1, 2022, Central Government employees and pensioners would each be eligible for increased amounts of Dearness Allowance and Dearness Relief.
According to projections, the additional financial effects of this increase in Dearness Allowance for Central Government Employees will total Rs. 6,591.36 billion each year and Rs. 4,394.24 billion in the fiscal year 2022–2023 (i.e., for a period of 8 months from July 2022 to February 2023).
According to estimates, this rise in Dearness Relief for Pensioners will have significant financial effects totaling Rs. 6,261.20 billion annually and Rs. 4,174.12 billion in the fiscal year 2022–2023 (i.e. for a period of 8 months from July 2022 to February 2023).
