DA Hike: There is a possibility that the government may again revise the fitment factor. It can be done up 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.
Central Employee DA Hike/Fitment Factor: Central employees and pensioners can get a big gift soon. After the May figures of the AICPI Index released by the Labor Ministry, the total score has reached 134.7 and the score has reached 45.58%, in such a situation, the increase of 4 percent DA in July is now considered certain. If 4% is re-stamped then it will increase to 46%. Its benefit will be given to 1 crore employees, officers and pensioners. There is a possibility that it can be announced anytime around Rakshabandhan before the elections. However, official confirmation has not been made yet.
Actually, the DA of central employees is increased twice a year in January and July, the amount of increase in DA depends on the data of AICPI index released by Labor Department, which is released every month. Recently the figures for May have been released, in which there has been an increase of 0.50 points, due to which the DA increase of 4 percent is believed to be fixed, although the figures for June are yet to come, after which the final will be how much the DA will increase. The DA of central employees is 42%, which is applicable from January to June 2023. Next DA is to be applicable for July to December 2023. This will be the second hike of the year. The new rates will be applicable from July 1, 2023, in such arrears will also be available, although it has not yet been officially confirmed that how much DA will increase and when it will be announced.
Whose salary will increase by how much?
For example, if the basic salary of a government employee is Rs 18000, then on this he gets dearness allowance of 42 percent i.e. Rs 7560, but if dearness allowance increases to 46 percent, then dearness allowance will increase to Rs 8280 per month, Accordingly, the salary will increase by Rs 720 every month.
If the basic salary of an employee is Rs 56900, then he will get Rs 2,276 more every month in terms of 4% more DA. Annually he will get a profit of Rs 27,312.
If someone gets a basic pension of Rs 30,000 a month, then he gets Rs 44,400 as dearness relief. After the 4% DR hike, this money will increase to Rs 42,600, which means the pension will increase by Rs 800 every month.
A look at the figures so far (DA Score)
Jan 2023 – 43.10%
Feb 2023 – 43.80%
Mar 2023 – 44.49%
Apr 2023 – 45.06%
May 2023 – 45.58%
Jun 2023 – Will be released between 28 to 30 July
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’ union has been demanding to increase it for a long time, in such a situation, there is a possibility that the government may revise the fitment factor again. It can be done up to 3.00 percent or 3.68 percent. This fitment factor can be implemented from 2026 and its decision can be taken by the end of 2023. It will benefit 52 lakh employees. However, no statement or official confirmation has been made by the government in this regard yet.
There will be a jump in salary up to 96000
The last time the fitment factor was increased in 2016 and from this 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 be increased from Rs.18000 to Rs.21000 or 26000 will be done. 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.
Possible increase in house rent allowance
According to media reports, the next revision in house rent allowance along with dearness allowance may be up to 3%. Thereafter the maximum HRA will increase to 30% from the existing rate of 27%. But this will happen only when DA crosses 50%. It is estimated that it may be decided by 2024. According to the memorandum of the Finance Department, HRA will be 30%, 20% and 10% when DA crosses 50%. The category of house rent allowance is according to X, Y and Z class cities. The central employees who fall in the X category are getting 27% HRA, which will be 30% if the DA is 50%. For Y class it will increase from 18% to 20%. For Z class people, it will increase from 9% to 10%.
