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7th Pay Commission: Government Employees to Receive Higher Fitment Factor and DA, Announcement Expected this Month

7th Pay Commission: Central government employees can anticipate positive developments in their salaries as the government is likely to announce an increment in the Dearness Allowance (DA) and fitment factor.

The DA provided to employees and pensioners is revised twice a year, in January and July, to offset the impact of inflation and rising prices. As per media reports, the hike in the fitment factor is expected to raise the minimum pay for central government employees from Rs 18,000 to Rs 26,000.

This potential increase in DA and the fitment factor signifies the government’s commitment to ensuring better compensation for its employees.

Expected DA Hike: Increase in Salary for Central Government Employees

In the previous revision, the Dearness Allowance (DA) was raised by 4% in March, bringing the total DA for central government employees to 42% from January 1, 2023. If the government decides to raise the DA by another 4%, the DA will further increase to 46%.

As for the fitment factor, the current standard is 2.57%. For example, if an employee has a basic pay of Rs 15,500 with a grade pay of Rs 4,200, their total pay will be Rs 15,500 × 2.57, amounting to Rs 39,835. However, employees have been demanding an increase in the fitment factor to 3.68, which would raise the minimum wage from the existing Rs 18,000 to Rs 26,000.

Calculating the DA Hike

The Central Government determines the DA and Dearness Relief (DR) for employees based on a specific formula. Here is the formula used:

Dearness Allowance Percentage = ((All India Consumer Price Index Average for the past 12 months (AICPI average) – 115.76) / 115.76) × 100

For Central Public Sector Employees, the formula is as follows:

Dearness Allowance Percentage = ((Average of All India Consumer Price Index Numbers for the past 3 months – 126.33) / 126.33) × 100

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