7th Pay Commission recent update: The government is scheduled to adjust the fitment factor in the New Year, which is excellent news for lakhs of Central government employees. It should be mentioned that the employees’ union has been campaigning for an increase in the fitting factor. The employees’ union has demanded that the fitting factor be increased from 2.57 to 3.68.
According to estimates, the Prime Minister Narendra Modi-led government at the Centre is likely to decide on an increase in the fitment factor following the 2023 Union Budget. According to certain sources, the Union government may announce an increase in the fitment factor during Holi.
Fitment factor calculation
If the fitment factor is increased three times, the salary would alter significantly, and the employees’ salary, excluding allowances, will be 18,000 X 2.57 = Rs 46,260. If the employees’ requests are met, the salary will be 26000 X 3.68 = Rs 95,680. If the government accepts 3 times the fitment factor, the pay will be Rs 21000 X 3 = Rs 63,000.
Previously, on September 28, 2022, the Union Cabinet authorised a 4% increase in Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners.
DA hike in January 2023 7th pay commission big update
At this point, a 4% increase in DA in January 2023 seems likely. According to some media sources, the dearness allowance hike in January 2023 will be comparable to the allowance issued around Diwali last year.
According to some rumours, the hike in DA will be announced in March 2023, and as it has historically been the case that the implementation date falls in January, the Central Government employees would also receive the arrears.
Over 1 crore employees and pensioners benefited
Significantly, the increase in dearness allowance by the central government will benefit about 47 lakh employees and 68 lakh pensioners of the country. The government had increased DA by 3 per cent at the beginning of the year, after which the dearness allowance had gone up to 34 per cent. Now with the increase in DA by 4 per cent, the dearness allowance will increase to 38 per cent.
Actually the dearness allowance of central government employees is revised twice a year. The first is given from January to June, while the second comes from July to December.