7th Pay Commission: Big boost for central government employees, salary likely to increase by Rs 49,420; details

We have a piece of good news for all Central government employees. According to the latest update, there is a high chance of the fitment factor increasing soon. An increase in the fitment factor has been a long-pressing demand of the central government employees unions. They want the government to raise the fitment factor from 2.57 times to 3.68 times.

If the fitment factor is increased, there will be a bumper increase in the salary. 

Calculation of salary after the probable increase in fitment factor 

Reportedly, the government can take a decision to increase the fitment factor after next year's Union Budget. If the government increases the fitment factor 3 times, then the salary of the employees excluding allowances will be 18,000 X 2.57 = Rs 46,260. At the same time, if the demands of the employees are accepted, then the salary will be 26000 X 3.68 = Rs 95,680. If the government accepts 3 times fitment factor, the basic salary will be Rs 21000 and the total salary excluding allowances will be 21000 X 3 = Rs 63,000.

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How fitment factor plays a role in the salary?

The fitment factor has a big role in the salary of central employees. According to the recommendations of the 7th Pay Commission, apart from salary allowances, the salary of central employees is determined by their basic salary and fitment factor. This is the factor due to which the salary of central employees increases more than two and a half times.

While fixing the salary, the Basic Salary along with Dearness Allowance, Travel Allowance, and House Rent Allowance is multiplied by the 7th Pay Commission's fitment factor of 2.57. 

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EPF and Gratuity are also included in the salary 

In addition to the allowances, other components like Monthly Provident Fund and Gratuity are also included in the salary. There is a separate formula for calculating the EPF and gratuity of a central employee. The take-home salary is decided after all the allowances and deductions are done from CTC.