7th Pay Commission: After 4% DA Hike, Central Government Employees Set to Get Basic Salary Increment; Know How Much Salary Will Increase
There is some good news for central government employees. They can get noted benefits in the upcoming year as discussions have started regarding the revision of their basic salary. The government is set to scrap the 7th pay commission in upcoming years and is looking to introduce a new formula for salary calculations.
Delhi, April 16: There is some good news for Central government employees. They can get noted benefits in the upcoming year as discussions have started regarding the revision of their basic salary. The government is set to scrap the 7th pay commission in upcoming years and is looking to introduce a new formula for salary calculations. However, an official announcement about the same is awaited.
According to a report in Zeebiz, the new change will permit the employees to change their fitment factor. Central government employees have long been demanding that their fitment factors be reviewed. The government employees for the past many months have been demanding a hike in fitment factor to 3.68. At present, the common fitment factor stands at 2.57 per cent. 7th Pay Commission: DA May Be Hiked By 4% For Central Government Employees, Pensioners in July 2023.
There are two views regarding the increment in the fitment factor. The first view advocates increasing the fitment factor from 2.57 to 3.68. Central Government Planning to Replace 7th Pay Commission With 8th Pay Commission in 2024? Know How Much Salary Might Increase.
After its implementation, central government employees will get an added benefit of Rs 3,000 in their basic salaries.
As per the second view, the Seventh Pay Commission's recommendations of an increment of 3.68 in the fitment factor should be implemented. Once it comes into effect, the difference in the old and the new salary of an employee will be Rs 8,000.
The calculation of the fitment factor is based on the pay band. The salary for all pay bands will be revised after the change in the fitment factor. After the revision, the difference between the new and old salaries will be quite evident.
Currently, if somebody gets a basic pay of Rs 15,500 in 4200 Grade Pay, his total pay will be Rs 15,500×2.57 or Rs 39,835. However, the hike will raise the minimum wage from Rs 18,000 currently to Rs 26,000.
The DA of central government employees was recently increased by 4% to 42%. Dearness allowance (DA) and dearness relief (DR) are revised twice a year, effective January 1 and July 1.
(The above story first appeared on LatestLY on Apr 16, 2023 02:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).