7th Pay Commission: Govt to decide on fitment factor in New Year? Salary likely to increase by THIS much, says reports

New Delhi: 7th Pay Commission -- The Central government might take its decision on revising the fitment factor in the New Year. The employees union have for a long time been demanding for a hike in the fitment factor across various pay bands. The demand has been to raise the fitment factor from 2.57 times to 3.68 times.

As per reports in the media, the government can take a decision the fitment factor hike after next year's Union Budget. Considering that the big festival after the Budget is Holi. A previous Zee Hindi report had suggested that the Modi government could announce a hike in fitment factor as a Holi gift to the emploees.

7th Pay Commission: Here is the calculation after probable hike in fitment factor

If the government increases the fitment factor 3 times, then the salary of the employees excluding allowances will be 18,000 X 2.57 = Rs 46,260. At the same time, if the demands of the employees are accepted, then the salary will be 26000 X 3.68 = Rs 95,680. If the government accepts 3 times fitment factor, then the salary will be 21000 X 3 = Rs 63,000. 

7th Pay Commission: Govt hikes DA by 4 percent to 38 percent

The Union Cabinet had on 28 September 2022, approved the release of additional instalment of Dearness Allowance and Dearness Relief @ 4 percent to Central Government employees and pensioners due from 01.07.2022 based on the percentage increase in 12 monthly average of All India Consumer Price Index for the period ending June, 2022.

The Central Government employees and pensioners will become entitled to higher amount of Dearness Allowance and Dearness Relief respectively, w.e.f. 01.07.2022.

The additional financial implications on account of this increase of Dearness Allowance to Central Government employees are estimated at Rs.6,591.36 crore per annum; and Rs.4,394.24 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).

The additional financial implications on account of this increase of Dearness Relief to pensioners are estimated at Rs.6,261.20 crore per annum; and Rs.4,174.12 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).

The combined impart on the exchequer on account of both Dearness Allowance and Dearness Relief would be of the order of Rs.12,852.56 crore per annum; and Rs.8,568.36 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).