7th Pay Commission: Central Govt Employees May See Salary Hike Soon As Fitment Factor, DA To Rise

7th Pay Commission: Central government employees are expected to get a good news related to their salary soon, as the Centre is likely to revise upwards the fitment factor in March. The minimum salary is expected to see a rise from Rs 18,000 to Rs 26,000 for central government employees after the hike in fitment factor.

According to media reports recently, the government is expected to revise the fitment factor and dearness allowance (DA) in March after Holi (March 8). The common fitment factor currently stands at 2.57 per cent. It means that if somebody, let’s say, gets a basic pay of Rs 15,500 in 4200 Grade Pay, his total pay will be Rs 15,500×2.57 or Rs 39,835. The 6th CPC had recommended the fitment ratio at 1.86.

According to the reports, employees are now demanding the government to raise the fitment factor to 3.68. The hike will raise the minimum wage from Rs 18,000 currently to Rs 26,000.

Earlier, media reports have also suggested that central government employees under the 7th Pay Commission are also likely to get a hike in their dearness allowance (DA) in March 2023, effective January 1, 2023. The government might also raise dearness relief (DR) for pensioners. Apart from this, the employees are also likely to get the 18-month DA arrears.

Dearness allowance (DA) and dearness relief (DR) are revised twice a year, effective January 1 and July 1. The last hike in September 2022, which benefitted about 48 lakh central government employees and 68 lakh pensioners, raised the DA by 4 per cent to 38 per cent. Before this, the government had raised the DA by 3 per cent to 34 per cent in March under the 7th Pay Commission.

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 government accommodation allotted to another government servant; or

(ii) He/she resides in accommodation allotted to his/her parents/ son/ daughter by the central government, state government, an autonomous public undertaking or semi-government organisation such as a municipality, port trust, nationalised 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 undertaking/ semi-government organisation such as municipality, port trust, etc., whether he/she resides in that accommodation or he/she resides separately in accommodation rented by him/her.

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