7th Pay Commission: Government employees may soon receive salary hikes
The 7th Central Pay Commission (CPC) is reportedly planning to increase the Dearness Allowance (DA) and fitment factor for nearly 50 lakh government employees. While the documentation process is ongoing, the Centre is expected to issue a statement regarding the DA hike by the end of next week. The central government also intends to change the fitting factor for the unexercised in March.
Here's all you need to know
As per reports, the minimum salary of central government employees is set to increase to Rs. 26,000 from Rs. 18,000 after the hike in the fitment factor. The government may also announce a 4% DA hike and receive an 18-month DA arrear. Retired employees or pensioners might also receive a 4% Dearness Relief hike.
Details on DA, DR hike
Dearness Relief (DR) and DA are revised twice every year, effective January 1 and July 1. During the September 2022 hike, approximately 48 lakh employees of the central government and 68 lakh pensioners benefited from it. Before that, the Centre had increased the DA by 3% to 34% in March last year under its 7th Pay Commission.
Centre may address 18-Month DA arrears
The Centre might also address the issue of 18-month DA arrears shortly. The move to freeze three installments of DR/DA to central government employees/ pensioners due from January 1, July 1, 2020, and January 1, 2021, was made in response to the COVID-19 pandemic, which caused economic trouble, in order to relieve pressure on government finances.
Know about fitment factor
The common fitment factor currently stands at 2.57%, meaning that if somebody receives a basic payout of Rs 15,500 in 4,200 Grade Pay, their total pay will be Rs 39,835. Notably, the 6th CPC had suggested the fitment ratio at 1.86. In January, the finance ministry also revised the House Rent Allowance (HRA) regulations under the 7th Pay Commission for central government employees.