7th Pay Commission: Salaries Of Govt Employees May Rise Soon As DA, Fitness Factor Likely To Go Up

The central government had raised the DA by 4 per cent which came into effect from 1 January 2023. After the hike, the DA of central government employees increased to 42 per cent

New Delhi: Soon, central government employees may get good news regarding their salaries as the union government is likely to announce a hike in the dearness allowance (DA) and fitment factor, according to News 18. The dearness allowance, which is provided to employees and pensioners to compensate them for rising prices, is revised twice a year — January and July.

The minimum salary of government employees is expected to rise from Rs 18,000 to Rs 26,000 for central government employees, after the hike in the fitment factor, as per the report.

Hike In Dearness Allowance

The central government had raised the DA by 4 per cent which came into effect from 1 January 2023. After the hike, the DA of central government employees increased to 42 per cent. If the government increases the DA by 4 per cent this also, the DA will increase to 46 per cent.

The Fitment Factor

Currently, the common fitment factor stands at 2.57 per cent. Considering an example, a person getting a basic pay of Rs 15,500 in 4200 Grade Pay, his total pay would be Rs 15,500*2.57 or Rs 39,835. The 6th CPC had recommended the fitment ratio at 1.86.

The employees have demanded raising to fitment factor to 3.68. The hike will raise the minimum wage from Rs 18,000 currently to Rs 26,000.

How DA Hike Is Calculated?

The central government revises the DA and DR for employees based on a formula. Following is the formula:

Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)x100.

For Central public sector employees: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months -126.33)/126.33)x100.