Delhi, May 16: Central government employees might get another good news soon as the Centre is likely to announce a hike in dearness allowance (DA) and fitment factor on 7th pay commission recommendations, according to several media reports. However, there is no official word on this.

The minimum salary of government employees is expected to see a rise from Rs 18,000 to Rs 26,000 for central government employees after the hike in the fitment factor. Previously, the Consumer Price Index (AICPI) with the base year 2001 was used to determine dearness allowance (DA) for central government personnel. However, at the beginning of September 2020, the central government altered the base year to 2016. 7th Pay Commission: When Will Central Government Revise Fitment Factor For Its Employees? Details Here.

How Much DA Will be Hiked?

Several media reports in recent times have indicated that the government would likely increase the dearness allowance by an additional 4% in July of this year. For those working for the central government, the current DA is 42%. However, if the increase of 4% in DA occurs, it will reach 46%.  7th Pay Commission Good News: Salary For Govt Employees to Likely to Hike Again in July, Here’s How Much DA Could Increase.

Fitment Factor

Fitment factor currently stands at 2.57 per cent. It means that if somebody, let’s say, gets In other words, if a person receives a basic salary of Rs 18,000 in the 4200 Grade Pay, his total compensation will be Rs18,000 x 2.57, or Rs 46,260. as per 7th pay commission. The 6th CPC had recommended the fitment ratio at 1.86.

There has been employees’ demand of raising the fitment factor to 3.68. The hike will raise the minimum wage from Rs 18,000 currently to Rs 26,000.

For those unaware the government last month approved a 4 percent hike in the dearness allowance to be implemented from January on basis of 7th pay commission. Pensioners and employees will now get 42 percent dearness relief and dearness allowance from earlier 38 percent.

(The above story first appeared on LatestLY on May 16, 2023 02:15 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website