If the basic salary of a central employee is Rs 18,000, then his salary excluding allowances will be 18,000 X 2.57 = Rs 46,260.
7th Pay Commission. Central employees can get a gift of fitment factor on Holi before dearness allowance. According to media reports, the Modi government can announce to increase the fitment factor around Holi.
If the fitment factor is increased, then the minimum basic salary of central employees may increase from Rs 18,000 to Rs 26,000. Although no official statement or confirmation has been made by the government so far, but it is being said that the government is considering it.
According to media reports, at present the fitment factor of central employees is 2.57 percent, accordingly the salary is being made, but the union of central employees has asked the government to increase the fitment factor from 2.57 times to 3.68 times. To increase the minimum wage from Rs 18,000 to Rs 26,000. If sources are to be believed, there have been talks of several visits between the government and the employees’ association in this matter and the increase in fitment factor is also believed to be fixed, although it is not yet decided when its decision or announcement will be made.
According to media reports, a decision can be taken on the removal of the election code of conduct of the states i.e. before March 10 and Holi. Factor). The minimum basic salary was increased from Rs 6,000 to Rs 18,000.
Understand the calculation of fitment factor like this
- If the fitment factor increases by 3.68 hike in 2022, then there will be a benefit of roughly 8000 in the salary and the basic salary will be 26 thousand.
- There will be different increase in the salary of different level of employees. With this, there can be an increase in the basic salary of government employees up to Rs 96000.
- Due to increase in basic pay, dearness allowance will automatically increase. This will benefit about 52 lakh employees.
- The basic salary of the employee is calculated by multiplying the fitment factor 2.57 of the 7th Pay Commission (7th Pay Commission latest update).
- For example- If the basic salary of a central employee is Rs 18,000, then his salary excluding allowances will be 18,000 X 2.57 = Rs 46,260 . Assuming the same 2.57 to be 3, then the salary will be 21,000X3 = Rs 63,000. The same fitment factor is increased from 2.57 to 3.68, then the same salary will be Rs 95,680 (26000X3.68 = 95,680). This would mean an increase of Rs 49,420 in the overall salary of the employees.
- If the fitment factor 3 is 3 times by 2.57 percent, then the basic pay of the employees will increase from Rs 18,000 to Rs 21,000, which means it will increase by Rs 3000.
- If it is 3.68 percent, then the salary will increase till 96000. At the same time, the dearness allowance of the employees will also increase, which is equal to 31 percent of the basic salary. The dearness allowance is calculated by multiplying the rate of DA by the basic pay. That is, due to increase in basic salary, dearness allowance will automatically increase.
(These figures and calculations are shown as an example, subject to change.)
