7th Pay Commission: Big Update on Fitment Factor! Central Govt Employees’ Salary to Increase by Rs 49,420

The employees have been asking the government to increase the fitment factor to 3.68 times. At present, it is 2.57 times.

Here is the calculation after a probable hike in the fitment factor

According to media sources, the government may decide to raise the fitment factor after the Union Budget of the next year. If the government raises the fitment factor three times, the employee's base pay, excluding incentives, 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. If the government accepts 3 times fitment factor, then the salary will be 21000 X 3 = Rs 63,000.

Update on DA Hike

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 at 4 percent to Central Government employees and pensioners due from June 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 estimates, the additional financial effects of this increase in Dearness Allowance for Central Government Employees will total Rs. 6,591.36 crore each year and Rs. 4,394.24 crores 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 crores annually and Rs. 4,174.12 crores in the fiscal year 2022–2023 (i.e., for a period of 8 months from July 2022 to February 2023).

The combined impact of Dearness Allowance and Dearness Relief on the exchequer would be in the range of Rs.12,852.56 crore each year, and Rs.8,568.36 crore in the fiscal year 2022–2023 (i.e., for a period of 8 months from July 2022 to February 2023).