At present, more than one crore central government employees and pensioners are getting 38 per cent dearness allowance.
The minimum pay of government employees is expected to increase from Rs 18,000 for central government employees to Rs 26,000 after the increase in fitment factor.
7th Pay Commission: Central government employees may soon get a good news regarding their salaries as media reports suggest that the Center may announce a hike in Dearness Allowance (DA) and fitment factor this month.
According to reports, the minimum pay of government employees is expected to increase from Rs 18,000 for central government employees to Rs 26,000 after the increase in fitment factor. Reports say that the government may revise the fitment factor and dearness allowance (DA) in March, after Holi (8 March).
fitment factor
The normal fitment factor currently stands at 2.57 per cent. This means that if one gets a basic pay of Rs 15,500 in, say, 4200 grade pay, then his total pay will be Rs 15,500×2.57 or Rs 39,835. The 6th CPC recommended a fitment ratio of 1.86.
According to reports, the employees are now demanding the government to increase the fitment factor to 3.68. The hike will increase the minimum wage from Rs 18,000 at present to Rs 26,000.
da hike
Dearness Allowance (DA) and Dearness Relief (DR) are revised twice a year, with effect from 1 January and 1 July. The last hike in September 2022, which benefitted around 48 lakh central government employees and 68 lakh pensioners, raised DA by 4 per cent. percent to 38 percent. Earlier, the government had increased DA by three per cent to 34 per cent in March under the Seventh Pay Commission.
According to media reports, apart from the fitment factor, the government may soon revise the DA as well.
18-month DA arrears
The government may also soon resolve the issue of DA arrears of 18 months. The decision to freeze three installments of DA/DR payable to Central Government employees/pensioners with effect from 1st January, 2020, 1st July, 2020 and 1st January, 2021 was taken in the context of COVID-19 causing economic disruption . To reduce the pressure on government finances.
In January, the finance ministry updated the House Rent Allowance (HRA) rules for central government employees under the 7th Pay Commission and said they will not be entitled to HRA in cases where:
(i) he/she shares the Government accommodation allotted to any other Government servant; Or
(ii) He/she lives in a residence allotted to his/her parent/son/daughter by the Central Government, State Government, an Autonomous Public Sector Undertaking or a Semi-Government Organization such as Municipality, Port Trust, Nationalized Banks, Life Insurance Corporation. of India, etc.; Or
(iii) his/her spouse has been allotted accommodation at the same station by the Central Government/State Government/Autonomous Public Sector Undertaking/Semi-Government Organization like Municipality, Port Trust etc., whether he/she resides in that accommodation or Lives separately in rented accommodation.
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