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7th Pay Commission: Big salary hike for central government employees, salary to increase by Rs 50,000!

7th pay commission: A goodie news for the Central Government employees. According to the most recent update, the fitting factor may rise soon. The central government employee unions have long advocated for a rise in the fitting factor. They urge the government to increase the fitting factor from 2.57 to 3.68. If the fitting factor […]

Edited By : Divya Richa | Updated: Nov 25, 2022 12:50 IST
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7th pay commission: A goodie news for the Central Government employees. According to the most recent update, the fitting factor may rise soon. The central government employee unions have long advocated for a rise in the fitting factor. They urge the government to increase the fitting factor from 2.57 to 3.68.

If the fitting factor is increased, the salary will rise drastically.

Salary calculation after a possible rise in fitting factor

According to reports, the government may decide to raise the fitment factor following next year’s Union Budget. If the government increases the fitment factor three times, the employees’ compensation, excluding allowances, will be 18,000 X 2.57 = Rs 46,260. At the same time, assuming the employees’ needs are met, the salary will be 26000 X 3.68 = Rs 95,680. If the government accepts a three-fold fitment factor, the base pay is Rs 21000, and the total income, excluding allowances, is Rs 63,000.

How fitment factor plays a role in the salary?

Central staff’ salaries are heavily influenced by the fitting factor. Apart from salary allowances, the remuneration of central personnel is determined by their basic salary and fitment factor, according to the recommendations of the 7th Pay Commission. This is the factor that causes central employees’ salaries to climb by more than two and a half times.

The Basic Salary, together with Dearness Allowance, Travel Allowance, and House Rent Allowance, is multiplied by the 7th Pay Commission’s fitment factor of 2.57 for calculating the salary.

The salary also includes EPF and gratuity

In addition to the allowances, the compensation includes other components such as the Monthly Provident Fund and Gratuity. A central employee’s EPF and gratuity are calculated using a distinct methodology. After all allowances and deductions from CTC are made, the take-home salary is determined.

First published on: Nov 25, 2022 12:50 PM IST
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