7th Pay Commission: Good news has come for central employees. After the increase in dearness allowance last day, now the central employees are going to get another gift. The central government is going to revise the fitment factor. The fitment factor of central employees will be increased by up to 3 times.
7th Pay Commission news today: This year was very special for the central government employees. Overall, the dearness allowance (DA hike) of central employees has increased by 8 percent. But, many more gifts are still awaited. Now one and a half month is left for the year to end. After this the journey of the new year will begin. In the new year, the gifts will also be new and more.
After the increase in DA last month, now the dearness allowance of the employees will be revised in the new year, but along with it, increase in Travel Allowance (TA) and House Rent Allowance (HRA) is also possible. Also, the biggest update for central employees can be on Fitment Factor Hike.
There has been no change in fitment for many years-
On the basis of the recommendations of the Seventh Pay Commission, Fitment Factor was implemented to increase the minimum salary of central employees. Due to imposition of fitment factor, the basic salary of central employees directly increased from Rs 6000 to Rs 18000. The fitment factor was determined to be 2.57 times.
However, as per the recommendations, it was said to be kept at 3. If it had been 3 then the minimum salary would have been Rs 21,000. But, the central employees demanded to keep it at 3.68. Since then this matter is pending. Even after many years there was no change in the fitment factor. But, now good news is coming.
Fitment factor may increase
The good news for employees is that their fitment factor can be revised in the new year. If sources are to be believed, the government is preparing to please the central employees before the Lok Sabha elections. In such a situation, the fitment of employees can be increased from 2.57 times to 3 times. However, this will also be much less than the current demand, but even if it is 3 times, there will be a significant increase in the pay band of the employees.
Know what is Fitment Factor?
As per the recommendations of the Seventh Pay Commission, the fitment factor is 2.57 times. While fixing the salary of central employees, apart from the allowances like Dearness Allowance (DA), Travel Allowance (TA), House Rent Allowance (HRA) etc., the basic salary of the employee is taken into account as per the fitment of 7th Pay Commission (7th Pay Commission latest update). The factor is calculated by multiplying by 2.57. For example, if the basic salary of a central employee is Rs 18,000, then excluding allowances his salary will be 18,000 X 2.57 = Rs 46,260. If this is considered as 3 then the salary will be 21,000X3 = Rs 63,000. Employees will get bumper benefits in this.
Calculation of allowances-
When the salary of central government employees is fixed, then all kinds of allowances are added, like DA, TA, HRA, medical reimbursement etc. After the increase in dearness allowance, TA is increased on the same basis. Increase in DA is also linked to TA. Similarly, HRA and medical reimbursement are also decided. When all the allowances are calculated then the monthly CTC of the central employee is decided.
After all the allowances and salaries are finalized, now comes the monthly Provident Fund (PF) and gratuity contribution. PF and gratuity contribution is linked to basic salary and dearness allowance (DA). The PF and gratuity of a central employee is decided by its formula. When all the allowances and deductions are made from CTC then the take home salary of the central employee is decided.
Government’s mood on Eighth Pay Commission
According to media reports, the 8th Pay Commission should be constituted in the year 2024. At the same time, it can be implemented within one and a half years after its formation. According to experts, if this happens, there is expected to be a huge jump in the salary of central government employees. Many changes are possible in the 8th Pay Commission as compared to the 7th Pay Commission of the employees.
How much will the salaries of employees increase?
There is going to be a lottery for employees in the 8th Pay Commission as compared to the 7th Pay Commission. If everything goes well then a huge jump in the salaries of the employees is expected. Fitment Factor Hike of employees will increase to 3.68 times. Also, whatever be the formula, an increase of 44.44% is possible in the basic salary hike of the employees.
