7th Pay Commission Latest Update: Two Gifts for Central Employees in July As Govt May Hike DA and Fitment Factor
The Centre is considering raising the dearness allowance (DA) and fitment factor according to the 7th Pay Commission, providing employees with the prospect of improved remuneration.
Mumbai, May 22: July could be a joyous time for Central employees as there is high chance that the Central government might increase the dearness allowance and fitment factor under the 7th Pay Commission. Following the recent salary hike, Central government employees are set to anticipate another potential salary increase in July 2023 in line with the 7th Pay Commission. According to media reports, the Centre is considering raising the dearness allowance (DA) and fitment factor according to the 7th Pay Commission, providing employees with the prospect of improved remuneration.
Notably, the Dearness Allowance and Dearness Relief are revised twice yearly — once in January and then in July. Dearness allowance is given to government employees, while the dearness relief is for pensioners. The previous DA and DR Hike was implemented in January. The current common fitment factor stands at 2.57, indicating that if an individual receives a basic pay of Rs 15,500 with a Grade Pay of 4200, their total pay will amount to Rs 39,835 (15,500 x 2.57). In contrast, the 6th Central Pay Commission (CPC) had recommended a fitment ratio of 1.86. 7th Pay Commission: When Will Central Government Revise Fitment Factor For Its Employees? Details Here.
Notably, employees have been advocating for an increased fitment factor of 3.68. Should the hike be implemented, the minimum wage would rise from the current Rs 18,000 to Rs 26,000, addressing the demands of employees for improved compensation. 7th Pay Commission: Centre To Revise Fitment Factor Rate in 2024? New Pay Commission Implementation Likely in 2026; Check Latest News Update.
For the unversed, the last revision in DA was done in March, raising it by 4 per cent, which became effective from January 1, 2023. After the 4 per cent hike, the DA of central government employees increased to 42 per cent. The salary of 47.58 lakh central government employees and the pensions of 69.76 lakh pensioners have received an increase following the recent hike in Dearness Allowance (DA) and Dearness Relief (DR).
(The above story first appeared on LatestLY on May 22, 2023 09:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).