7th Pay Commission: Major hike in basic salary of government employees likely, details here

Good news for Central government employees. They may soon get a pay hike besides dearness allowance. The reason for the increase in salary this time will be the fitment factor. According to sources, the government may soon give approval to increase the fitment factor.

The dearness allowance, which was stopped for the last two years, will also be given soon. After this increase, DA will be more than 34%. After increasing the dearness allowance this time, the possibility of increasing the minimum wage has also increased. Employees unions are also continuously demanding this.

Read | 7th Pay Commission: Salary of central government employees may increase soon by THIS amount

Unions have demanded that the fitment factor be increased from 2.57 times to 3.68 times. If this happens, the minimum wage will increase from Rs 18,000 to Rs 26,000. Prior to this, the government had increased the salary at the entry level in 2017. Then the government increased the basic salary from Rs 7,000 to Rs 18,000.

What is fitment factor?

Fitment factor is a figure used by 7th Central Pay Commission (CPC) with which the basic pay in 6th Central Pay Commission regime (Pay in Pay band + Grade pay) is multiplied in order to fix basic pay in revised pay structure (7th CPC). Fitment factor formulated by 7th Central Pay Commission is 2.57.

How much salary increase with the fitment factor

If the fitment factor is increased, then the salary of the employees can increase significantly. Suppose the government increased the fitment factor to 3.68 times as per the demand, the minimum wage of the employees will be Rs 26,000.

Adding all the allowances on the basic pay of Rs 18,000, as per the 2.57 fitment factor (18,000 * 2.57 = Rs 46260) the salary will be Rs 46,260. If the fitment factor is 3.68, then your salary will increase to Rs 95,680 (26,000 * 3.68 = Rs 95,680).

One-time dearness allowance

There is also talk of giving dearness allowance, which has been stopped for almost two years due to the Covid-19 pandemic. The government is contemplating to give up to Rs 2 lakh of DA together. The Finance Ministry had stopped the DA hike in May 2020 till June 30, 2021 due to the pandemic.

There has been a long-standing demand from the employees to give stopped DA from January 2020 to June 2021. There was a jump in the AICPI index in March 2022, after which it is certain that the government can increase Dearness Allowance (DA) by 5%. If this is approved, then the DA of the employees will increase from 34% to 39%.