After giving Diwali gifts to its employees with hike in dearness allowance, HRA and TA, the central government is contemplating yet another bumper salary hike on the new year. According to the Zee Business report, there is a possibility of increment in the fitment factor, minimum wage or basic pay of central government employees as per the 7th Pay Commission recommendation. People working under the central government are requesting the authorities to increase the fitment factor from 2.57 per cent to 3.68 per cent. Now, finally, the decisions are likely to be taken before the presentation of the Union Budget 2022.
After getting the green signal from the Union Cabinet, the salary hike will be included in the expenditure of the upcoming budget. The increase in the fitment factor will not only increase the salaries of the central government employees, but will also increase the minimum wages of the central government employees. At present, the salary is calculated at a fitment factor of 2.57 per cent and the basic pay as per this is Rs 18,000. However, if the government agrees to the proposed 3.68 per cent fitment factor, the basic pay will increase by Rs 8000 and reach the level of Rs 26,000.
During the last interaction between central government employees and government representatives, the cabinet secretary had assured to increase the fitment factor.
Due to the increase in fitment factor, lakhs of central government employees are going to get a big relief.
Meanwhile, the government can take a final decision on the pending issue of DA increment after meeting with the Employees’ Representative Organization. The government had increased the DA of its employees in July this year but the employee organizations are demanding the application of revised DA from January 1, 2020.
The central government had stopped the payment of DA in 2020 due to the financial trouble caused by the COVID-19 pandemic. While the DA payment returned with increment in July this year, the employees are demanding implementation of the revised rates as per the dates proposed earlier.
The government is communicating with the employees about their concerns but the final result is yet to come. If the government decides to pay the DA arrears, it will bring a big relief to thousands of employees and pensioners.
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