Good News: Central Govt Employees Salary Likely to Increase Ahead of Holi, Know Details

According to media reports, the Union government, led by Prime Minister Narendra Modi, is expected to announce an increase in the fitment factor for central government employees in the coming days under the 7th Pay Commission. As a result, their compensation will rise.

The government is considering raising the fitment factor for its employees, according to a report by Zee News. As previously stated, this rise will raise a government employee’s minimum wage. Several government employee unions have already demanded that the fitting factor be increased from 2.57 to 3.68, but no decision has been made yet.

It is expected that by Holi 2022, employees will also receive their pending DA Arrears.

Aside from that, unions have been pushing for a raise in the minimum wage from Rs 18,000 to Rs 26,000. According to Zee News, the government is anticipated to make a decision on enhancing the fitment factor soon.

If the government raises the fitment factor, central government employees’ minimum wages will automatically rise. A fitment factor is a multiplying number used by the 7th pay commission to calculate an employee’s basic salary.

What is DA and What we Know so Far?

Dearness Allowance is a component of the salary of government employees and pensioners. To cope with the rising inflation, the central government revises DA and DR benefits twice every year – in January and July. DA varies from employee to employee based on whether they work in the urban sector, semi-urban sector, or the rural sector.

The government’s last move had benefitted early 48 lakh central government employees and 65 lakh pensioners across India when it hiked DA in October.

Employees are currently compensated based on a fitment factor of 2.57 percent, which is used to compute their basic salary. If the government lifts the fitment ratio to 3.68 percent, as requested by unions, an employee’s basic wage will increase by Rs 8,000. If the fitment factor is increased, employees will receive a minimum compensation of Rs 26,000, up from Rs 8,000 currently.

A raise in basic salary will immediately result in increases in other allowances, such as the dearness allowance. It’s worth noting that, despite the fact that DA is raised twice a year, in January and July, no such announcement has been made yet this year. Employees currently earn a DA of 31% of their basic pay as a result of the 7th Pay Commission. As a result, a rise in basic pay for central government employees will also result in an increase in DA.

However, there has been no official declaration on the subject, and neither the government nor the media have remarked on it. DA is normally increased twice a year, in January and July. For the month of January this year, however, no raise has been declared. The 7th Pay Commission churned out DA, which is one of the most crucial parts of any employee’s pay, especially those with government jobs.

It is also expected that the government will pay off arrears for 1.5 years in one go, with employees receiving Rs 2 lakh as a one-time payment.

Source: Zee News and News 18