If the figures of AICPI index from January to July increase, then it will increase the total DA by 45% at 3% DA and 46% at 4%. The new rates may be applicable from 1 July 2023. However, after the figures of June, it will be decided that by what percentage the DA of the employees-pensioners will increase in July 2023.
Central Employee DA-Fitment Factor Hike: There is good news for central employees and pensioners. In July, dearness allowance may once again increase by 4 percent, after which DA will increase from 42 percent to 46 percent. It will be implemented from July 2023. Along with this, other allowances will also increase. This estimate has been made from the data released by AICPI for February. Apart from this, before the upcoming elections, the rates of fitment factor can also be revised, although the official confirmation is yet to be done.
Possible increase in DA by 3 to 4 percent
Actually, the DA of central employees increases twice a year in January and July, it is calculated on the basis of Consumer Price Index for Industrial Workers (CPI-IW) released by Labor Bureau every month. Recently, the February data released by the Labor Ministry has decreased by 0.1 point and the index number has reached 132.7, in such a situation, there are indications of increasing DA again by 3% in July, although the figures for March to June are yet to come. Rest, if there is an increase then the DA may go up to 4%. This will be the second hike of the year.
Dearness Allowance can be 46%
According to media reports, if the figures of AICPI index from January to July increase, then it will increase the total DA by 45% at 3% DA and 46% at 4%. The new rates may be applicable from 1 July 2023. However, after the figures of June, it will be decided that by what percentage the DA of the employees-pensioners will increase in July 2023. There is a possibility that it can be announced around Raksha Bandhan. This will increase the salary from 50000 to 1 lakh. Its benefit will be given to 48 lakh employees and 69 lakh pensioners. DA will be determined by the formula (42 x 29200) / 100. Similarly, dearness relief for pensioners is also calculated.
3.00 or 3.68 percent possible in fitment factor
Apart from DA, employees can also get the gift of increase in fitment factor. According to media reports, in view of the upcoming elections, the Modi government may take a decision on increasing the fitment factor or decide a new formula to increase the salary of the employees. At present the fitment factor of the employees is 2.57%, there is a possibility that the fitment factor may be increased to 3.00% or 3.68% under the 7th Pay Commission, after which the basic salary will increase from 18000 to 21000 or 26000 directly. In this case, the fitment factor can be implemented from 2026. It will benefit more than 50 lakh employees.
There will be a jump in basic salary
According to media reports, in view of the increasing demand of the employees, the Department of Expenditure may consider the demands of the employees and send the recommendations based on the review to the Ministry of Finance. The fitment factor may be increased in 2024 based on the recommendations of the 7th Pay Commission. The decision on the same fitment factor can be taken next year at the time of formation of the new pay commission.
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 3.68, the salary will be Rs 95,680 (26000 X 3.68 = 95,680) ie Rs 49,420 in salary. With 3 times the fitment factor, the salary will be 21000 X 3 = Rs 63,000. If the fitment factor of the employees is increased, then the basic salary of 15500 can be increased to Rs.39835. 15500*2.57 = Rs 39,835.
