7th Pay Commission latest news: In a good news for lakhs of Central government employees, the government is expected to revise the fitment factor in the New Year. It is to be noted that the employees union have been seeking an increase in the fitment factor. The employees union have been demanding to hike the fitment factor from 2.57 times to 3.68 times.
According to reports, Prime Minister Narendra Modi-led government at the Centre is likely to decide on the hike in the fitment factor after 2023 Union Budget. Some reports claimed that the Union government may announce a hike in fitment factor during Holi.
If the fitment factor is increased three times then there will be a significant change in the salary and the salary of the employees excluding allowances will be 18,000 X 2.57 = Rs 46,260. If the demands of the employees are accepted, then the salary will be 26000 X 3.68 = Rs 95,680. If 3 times fitment factor is accepted by the government, then the salary will be 21000 X 3 = Rs 63,000.
Earlier on 28 September 2022, the Union Cabinet had approved the release of 4% additional installment of Dearness Allowance (DA) and Dearness Relief (DR) to Central Government employees and pensioners.
The employees and pensioners will receive the increased DA and DR respectively, w.e.f. 01.07.2022.
The increase in DA will put an estimated burden of Rs.6,591.36 crore per annum; and Rs.4,394.24 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).
