7th Pay Commission: Central government employees have some good news coming their way. If everything goes as planned, they might receive two favorable developments in July.
The first gift expected in July is an increment in the dearness allowance, followed by an increase in the fitment factor. Responding to the demands of central employees regarding the 7th Pay Commission, the central government is likely to announce a rise in the fitment factor next month. It is worth noting that central employees have been persistently requesting an increase in the fitment factor, as it directly affects their basic salary.
7th Pay Commission: Increase in Fitment Factor and Minimum Basic Pay
Currently, central government employees receive a fitment factor of 2.57 under the 7th Pay Commission. However, there is a demand to raise it to 3.68 times. If the fitment factor is increased from 2.57 to 3.68, the minimum basic pay will rise from Rs. 18,000 to Rs. 26,000. This change would lead to a significant boost in the minimum wages of central employees.
Basic Pay to be Calculated at 3.68% instead of 2.57%
The last time the government increased the fitment factor was in 2016 when the 7th Pay Commission was implemented. At that time, the minimum wage for employees jumped from Rs. 6,000 to Rs. 18,000, while the upper ceiling increased from Rs. 90,000 to Rs. 2.5 lakh. Now, there is a possibility of another salary increase for central employees this year.
Increased Basic Pay Rs.18000 to Rs.26000
If the fitment factor is revised, the basic pay will see a significant rise from Rs. 18,000 to Rs. 26,000. This adjustment in the fitment factor plays a crucial role in determining the basic pay for all central government employees.