DA Hike: There is good news for Central Government employees and pensioners. Dearness allowance is going to increase once again. But, in another case the central employees are going to get good news. First of all let’s talk about Dearness allowance.
The AICPI index has reached 132.5. In such a situation, an increase of 3 percent in the dearness allowance (DA Hike) of central employees is believed to be fixed. Due to this, the salary of the employees (high salary bracket) will increase by more than 20 thousand rupees. More than 1 crore employees and pensioners are going to get direct benefit from this.
DA will reach 41%
After 38% dearness allowance and dearness relief, the Modi government at the center can once again increase the dearness allowance (DA Hike) of central employees by 3% for the new year i.e. January 2023. However, this increase will happen in March. According to the data of AICPI till November 2022, an increase of 3 percent in dearness allowance is clearly visible. If dearness allowance is increased by 3 percent, then it will reach 41% (Dearness Allowance).
Minimum salary will increase after DA
Now let’s talk about the fitment factor. There are talks of increasing this as well. If this happens then there will be a big jump in the salary. The increase in the fitment factor under the 7th Pay Commission will increase the basic salary of central employees by Rs 8,860. This increase can be given after DA Hike. Currently, the fitment factor is 2.57 times. It is likely to be 3.68 times in the coming days. If this happens then the basic salary at level-3 will increase from Rs.18000 to Rs.26000. Directly there will be an increase of Rs 8000 in the salary of the employees. Along with this, the effect will also be seen in the payment of DA.
Salary will increase by Rs 49,420 due to fitment factor
The basic salary of a central employee at Level-3 is Rs 18,000, so excluding allowances, his salary will be 18,000 X 2.57 = Rs 46,260. If the fitment factor becomes 3.68 times, then the salary will reach 26000X3.68 = Rs 95,680. Employees will get bumper benefit in this. This means that overall the employees will get an increase of Rs 49,420 as compared to the existing salary. This calculation is on the minimum basic salary. Those with maximum salary can get a bigger benefit.
What is Fitment Factor?
The formula for fixing the Basic Salary of all Central Government employees is the Fitment Factor. Under the 7th Pay Commission, the salary of the employees was increased by the fitment factor itself. The fitment factor was increased in 2016. At that time the basic salary of central employees was increased from Rs.6000 to Rs.18000. While fixing the salary of central employees, the basic component of the employee, excluding allowances (Dearness Allowance (DA Hike), Traveling Allowance (TA), House Rent Allowance (HRA) etc.), is arrived at by multiplying the fitment factor by 2.57.
