The government can increase the fitment factor to 3.00 percent or 3.68 percent, the same can be implemented from 2026. It will benefit 52 lakh employees. However, no official confirmation has been made by the government in this regard yet.
Central Employee DA Hike 2023: The wait of central employees and pensioners is about to end. After 2 days i.e. on 31st July, AICPI Index June figures will be released by the Labor Department, which will make it clear that what will be the percentage increase in Dearness Allowance for the next half year. According to the data of AICPI index for May 2023, dearness allowance has reached 45.58 percent and the index is at 134.7 points, in such a situation, a 4 percent increase in DA is considered fixed. At present the DA of central employees is 42% which can reach up to 46%. If this happens, then there will be a big jump in the salary of the employees and the pension of the pensioners.
4 percent increase in DA fixed, salary will increase up to 28000
Actually, the dearness allowance of central employees is increased twice a year by the central government, this increase depends on the figures of AICPI Index released by the Labor Department. Till now the figures have been released till May 2023, in which the rate of dearness allowance has reached 45.57 points. Now only the figures of June are yet to come, which will be released on July 31, it will be clear that how much the dearness allowance of the employees and pensioners will increase from July. It is expected that there will be a 4 per cent increase in DA in July, after which the DA of the employees will increase to 46 per cent. It is likely to be implemented from 1 July 2023.
There is a possibility that it can be announced by the central government anytime between Rakshabandhan to Diwali before the upcoming elections, although official confirmation has not been done yet. This will benefit 1 crore employee-pensioners. For example, if the basic salary of a government employee is Rs 18000, then he gets DA of 42% i.e. Rs 7560 and on 46% it will be Rs 8280 per month, as per From this, the salary will increase by Rs 720 every month. If someone’s salary is Rs 56900, then he will get the benefit of Rs 2,276 every month and Rs 27,312 annually.
Possible increase in HRA
According to media reports, HRA can also be increased along with dearness allowance. The last HRA was increased in July 2021 and saw an increase of 25%. This time there is a possibility of an increase of up to 3 percent. If there is an increase in HRA, then there can be a big increase in the salary of government employees.
It is believed that HRA can be increased by 3% in X class cities and only 2% in Y class cities and 1% in Z class. Since the HRA of a government employee is increased on the basis of the city, it is placed in X, Y, and Z categories. At present, Z class employees get 9, Y 18 and X 27% HRA on their basic salary. Minimum 5400, 3600 and 1800 rupees are available as HRA for all the three categories.
Fitment factor may increase
If media reports are to be believed, the fitment factor of central employees may also be revised before the upcoming elections. Presently the fitment factor is 2.57 per cent and salary is being given on this basis under the 7th pay scale. But the employees’ unions have been demanding to increase it for a long time, so there is a possibility that the government may increase it to 3.00 per cent or 3.68 per cent. This fitment factor can be implemented from 2026 and its decision can be taken by the end of 2023.
This will benefit 52 lakh employees. However, no statement or official confirmation has been made in this regard by the government. The last time the fitment factor was increased in 2016 and from the same year the 7th pay commission was also implemented and The minimum salary of the employees was directly increased from Rs 6000 to Rs 18,000 and now if it is increased then the basic salary will increase from 18000 to Rs 21000 or 26000 directly.
For example, if someone’s basic salary is Rs 18,000, then his salary excluding allowances will be 18,000 X 2.57 = Rs 46,260. At 3.68, the salary will be Rs 95,680 (26000 X 3.68 = 95,680) i.e. Rs 49,420 in salary. With 3 times the fitment factor, the salary will be Rs 21000 X 3 = Rs 63,000. The same basic pay of 15500 can be increased to Rs 39835 . 15500*2.57 = Rs 39,835.
No consideration on 8th pay commission
Recently, Minister of State for Finance Pankaj Chaudhary of the Modi government has refused to bring the 8th Pay Commission in the Rajya Sabha. Making plans, it is clear that even in 2024, the 7th Pay Commission can be implemented or a new structure can be implemented regarding salary.
