Fitment factor: From the figures of AICPI index that have come so far, it seems that next time also an increase of 4 to 5 percent can be seen. Employees in high salary bracket will get benefits of more than Rs 20 thousand. More than 1 crore employees and pensioners will get direct benefits from this.
There is good news for central government employees and pensioners. There may be many important changes in his salary next year. Dearness allowance will increase in the new year, while the government can also change the next pay commission. The fitment factor, however, may be patchy at best. Dearness allowance, or mercy allowance, is the first thing.
After getting dearness relief and 46 percent dearness allowance, Modi government can increase the dearness allowance of central employees by 4 to 5 percent in January 2024. AICPI index data has been released till September. Dearness allowance has increased by 2.4 percent so far. Currently, the DA score stands at 48.54%. If the estimates are correct then dearness allowance can reach 42 percent.
Minimum salary will be Rs 8000
Fitment factor is also discussed. If this happens, there will be a huge increase in the salaries of central government employees. Due to change in fitment factor under the 7th Pension Commission, the salary of central employees will increase by Rs 8,860. Currently, the fitment factor is 2.57. If it is increased to 3.68, then the minimum limit of level-1 grade pay will be Rs 26,000. This means there will be a direct increase in salary by eight thousand rupees.
If the basic salary of a Central employee at Grade Pay 1800 at Level-1 is Rs 18,000, then the salary calculated as per fitment factor excluding allowances will be Rs 18,000 X 2.57 = Rs 46,260. If it is taken as 3.68, then the salary will be Rs 26,000 divided by 3.68 and it will be Rs 95,680. Meaning there will be a total difference of Rs 49,420 in the salary of the employees. This calculation is made on minimum value. Those with highest salary will get more benefits.
What is fitment factor?
Fitment Factor is the formula to determine the basic pay of all central government employees. The recommendations of the 7th Pay Commission (7th CPC) led to its implementation. This automatically increases the salary of the employees. The fitment factor was last increased in 2016. Later the basic salary of central employees was increased from Rs 6,000 to Rs 18,000.
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