7th Pay Commission: Major Updates on DA Hike, Fitment Factor to be Announced Soon

It is expected that the Center will give the Central government employees three updates relating to salary increases this New Year because they have been waiting for several months for some significant decisions from the Center.

They have been awaiting official confirmation that the 18-month-old arrears on Dearness Allowance (DA), the increase in Fitment Factor, and another round of DA hikes to be paid. According to rumors, the Center can decide on these three high-priority tasks in the coming year.

Updates on the Fitment Factor Hike:

After the Union Budget for the next year, the Centre will probably decide whether to hike the fitment factor. The remuneration of the employees, excluding allowances, at a three-fold increase in the fitment factor, is 18,000 X 2.57, or Rs. 46,260. And if the employees' requests are granted, their salary, which is 26000 X 3.68 = Rs 95,680, will be paid. The pay will be Rs 63,000 if the government accepts a three-times fitment factor, or Rs 21,000.

Updates on Next DA Hike:

According to reports, in response to high inflation rates, government employees would receive a 3–5% pay raise in January. The Union Cabinet recently agreed to a 4 percent Dearness Allowance and Dearness Relief for government workers and pensioners beginning on July 1, 2022.

Govt’s Decision on the 18-Month DA Arrears:

For the cabinet's consideration and discussion, the DA arrears have been due for the past 18 months, from January 2020 to June 2021.

According to media sources, the DA arrears of Level-3 employees range from Rs 11,880 to Rs 37,554. Employee arrears for Level-13 or Level-14 can range from Rs 1,44,200 to Rs 2,15,900.