Salary Increase Formula: Important news for the employees. In fact, the government is going to implement a new formula by abolishing the Pay Commission in the coming year. Under which there will be an increase of 12 thousand in the salary of the employees.
The coming year can be very beneficial for central employees. Discussion has started regarding revision in his basic salary. The government is going to implement a new formula by abolishing the pay commission in the coming year. In this the fitment factor can be changed.
Due to its change, there can be a big jump in the salary of the employees. For a long time there has been a demand of central employees that their fitment factor should be revised. According to sources, next year the government may increase the fitment factor by reviewing it. The current fitment factor is 2.57 times.
How much can the fitment factor increase?
There are two sides to the increase in fitment factor. The first fitment factor should be increased from 2.57 times to 3. This will increase the basic salary of the employees by about Rs 3000. On the other hand, the fitment factor should be increased to 3.68 times according to the recommendations of the 7th pay commission. Due to this, there will be a difference of about 8000 rupees in the salary of the employees. Actually, its calculation varies according to the pay band.
7th Pay Commission Fitment Factor 2.57-
After the pay commission, the formula of fitment factor was adopted to decide the basic salary of the employees. As per the recommendation of the 6th Pay Commission, the fitment ratio was 1.86. But, with the implementation of the 7th Pay Commission, a common fitment benefit of 2.57 was implemented across all pay bands of central government employees. This was recommended by the Pay Commission itself.
How is fitment factor calculated in 7th CPC?
- Assuming Basic Pay as on 31.12.2022 (100%)= 1.00
- Dearness Allowance as on 31.12.2022 (125%)= 1.25
- Total (Basic Salary+DA)= 2.25
- 7th CPC recommended increase of 14.29% on total sum (Basic Pay +DA)= 0.32
- Fitment factor= 2.57
Salary will increase by Rs 12604-
Salary will be revised for all pay bands on change of fitment factor. The difference in basic salary will be clearly visible. In both the tables given above, we have shown by calculation that how and how much difference will there be in the salary.
The fitment factor in the first table is 2.57. At the same time, in the second table, 3.68 has been placed with an expected increase. If we look at Grade Pay 2800, then there will be a difference of Rs 12,604 in the total salary after changing the fitment. Means his salary will be Rs 41,804.
