The Pay matrix prepared in the 7th Pay Commission is based on the Fitment factor, therefore the Fitment factor is considered to play an important role in the salary received by the employees.
Central Employee salary Hike 2023: Central employees can get a big gift in the new year. With this, there will be an increase in salary from 49000 to 96000. There is speculation that the fitment factor will increase in the new year. According to the media reports so far, the Modi government at the Center may consider the fitment factor of the employees before the budget session in 2023. It can be increased to 3.00 or 3.68 percent. However, no official confirmation or statement has been revealed yet.
Actually, the central employees have been demanding for a long time to increase the fitment factor under the recommendations of the 7th Pay Commission. At present, the fitment factor of the employees under the 7th Pay Commission is 2.57 times and the basic salary is 18000. If sources are to be believed, the central government may consider this in the new year and give its benefits before the end of 2023. There is a possibility that the fitment factor may be increased from 3 percent to 3.68 percent, after which 8000 in the minimum wage. There will be a one-time increase of Rs.
Salary will increase from 63000 to 96000
The minimum basic pay will increase from Rs 18,000 to Rs 21,000 if the fitment factor is increased by 3 per cent and by 3.68 per cent it will increase to Rs 26,000. 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. At 3.68, the salary will be Rs 95,680 (26000 X 3.68 = 95,680), which means there will be a benefit of Rs 49,420 in salary. With 3 times the fitment factor, the salary will be Rs 21000 X 3.00 = Rs 63,000.
That’s why demand is rising
The fitment factor is considered a major parameter for fixing the minimum salary of central employees. Due to this factor, the salary of central employees increases by more than two and a half times. The Pay matrix prepared in the 7th Pay Commission is based on the Fitment factor, therefore the Fitment factor is considered to play an important role in the salary received by the employees. Apart from the allowances of the employee, it is decided on the basis of their basic salary and fitment factor. There is a possibility that the government may take a decision on this demand after the budget to be presented on 1 February 2023 next year.
Explain that apart from allowances, other components are also included in the salary of central employees. EPF and gratuity are linked to basic salary and dearness allowance along with monthly provident fund and gratuity in salary. However, a separate formula is fixed for calculating EPF and gratuity of a central employee and separate for dearness allowance. . CTC is formed after all allowances and deductions, after which the take home salary of the central employee is decided, which is transferred to their accounts.
