7th Pay Commission latest news: Based on the recommendations of 7th CPC, Fitment Factor was implemented to increase the minimum salary of central employees.
7th Pay Commission latest news: In the year 2016, there was a bumper increase in the salary of central employees. The 7th Pay Commission (7th CPC) for central employees was implemented this year. Based on the recommendations of the 7th CPC, the Fitment Factor was implemented to increase the minimum salary of central employees.
Due to the fitment factor, the minimum salary of central employees directly increased from Rs 6000 to Rs 18000. The fitment factor is fixed at 2.57 times the basic salary. But, the demand is to be tripled. This demand is happening since the year 2017. However, there has been no hearing on this so far. If the fitment is made 3 times, then the minimum salary of central employees will be above Rs 26000.
Fitment factor is applied on basic salary
The fitment factor has the biggest role in deciding the salary of central employees (CG Employees Salary). According to the recommendations of the 7th Pay Commission, the total salary of central employees is determined by Basic Salary and Fitment factor in addition to allowances. Means the salary of central employees is increased by calculating two and a half times.
What is the role of Fitment Factor?
As per the recommendations of the 7th Pay Commission, the fitment factor is 2.57. While fixing the salary of central employees, apart from allowances like dearness allowance (DA), traveling allowance (TA), house rent allowance (HRA), the basic salary is worked out by multiplying the fitment factor by 2.57. For example- If the basic salary of a central employee is Rs 18,000, then excluding allowances his salary will be 18,000 X 2.57 = Rs 46,260. If the fitment factor is 3, then definitely it will be beneficial. It is a long standing demand of the employees that the fitment should be increased.
DA Calculation
When the salary of central government employees is fixed without allowances, then after that all kinds of allowances are added, such as DA, TA, HRA. DA for central employees is given to protect them from loss due to inflation. It is decided twice a year. The first time is fixed for the period from January to June and the second time for the period from July to December.
DA may increase by 4 percent
The government calculates the average of inflation for the first 6 months of the year, in which January to June is counted. After this, the average of inflation is calculated in the second half. On this basis, the increase in DA is decided. DA is always more than average inflation. Currently, the July AICPI index stands at 133.3. Therefore, it is being estimated that for the period of July 2023, dearness allowance can be increased by at least 4 percent. After the increase in DA, TA is increased on the same basis. The increase in DA is also linked to TA. Similarly HRA is also decided. When all the allowances are calculated then the monthly CTC of the central employee is prepared.
Contribution of EPF, Gratuity
When all kinds of allowances and salary are finalized, then the matter is about Provident Fund (PF) and Gratuity contribution. Contribution is fixed on the basis of basic salary and DA in PF and gratuity. After this, all the allowances and deductions are done from CTC, then the take home salary of the central employee is made.
