Last Update: January 24, 2023, 12:44 pm IST
The employees are now reportedly requesting the government to increase the fit factor to 3.68.
Union Finance Ministry can increase the salary of central employees annually instead of 10 years.
There are two incentives available for government employees in the Union Budget 2023 to be announced on February 1. According to Finance Ministry sources, the budget’s fitment factor for salaries of employees may change and the House Building Allowance (HBA) advance may also be increased. Rs 25 to Rs 30 lakh. is the final budget of Narendra Modi administration before the 2024 elections.
The present value of the normal fitment factor is 2.57%. In other words, if a person gets a basic pay of Rs 15,500 in 4200 grade compensation, his total pay will be Rs 15,500 x 2.57 or Rs 39,835. 6 A fitment ratio of 1.86 has been suggested by the CPC.
The employees are now reportedly requesting the government to increase the fit factor to 3.68. The hike will increase the minimum wage to $26,000 from the current level of Rs 18,000.
On February 1, Finance Minister Nirmala Sitharaman will deliver the budget speech and Budget 2023. The budget session of Parliament will start from January 31.
A Moneycontrol report claims that the proposed compensation revision of the 7th Pay Commission is a subject of ongoing debate. According to sources, the Pay Commission will have the option to adjust the salaries of central government employees using the fitment factor. The government believes that instead of increasing the salary every ten years, it should be done every year. This will help the employees working in lower level posts to get the same pay as the officers working in higher level posts.
Former Finance Minister Arun Jaitley had proposed an annual increase in the salaries of the employees. In 2016, when the 7th Pay Commission was approved, Jaitley had said that the time had come to increase the salaries of employees annually. The initial level personnel will get its benefit. It is expected that the government may include a new formula for salary revision of employees in the budget. The annual increment plan will be used in the 2024-25 budget.
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