Government Employee Salaries To Increase Soon As DA, Fitment Factor Likely To Increase, Per 7th Pay Commission

According to media sources, central government workers may soon get good news about their pay as the Centre may soon announce an increase in dearness allowance (DA) and fitment factor. The DA is updated twice a year in January and July to reflect changes in the cost of living for workers and pensioners.

According to the reports, the minimum wage for government workers would increase from Rs 18,000 to Rs 26,000 as a result of the increase in the fitment factor. There is, however, no formal statement about this.

DA Hike

The most recent adjustment to DA was made in March, upping it by 4%, and it will now take effect on January 1, 2023. The DA for central government workers rose to 42% after the 4% raise. According to sources, the DA would rise to 46% if the government increased it by 4% this time as well.

The Fitment Factor

The current value of the common fitment factor is 2.57%. In other words, if a person receives a base salary of Rs 15,500 in the 4200 Grade compensation, his total compensation would be Rs 15,500 x 2.57, or Rs 39,835. The fitment ratio of 1.86 has been suggested by the 6th CPC.

Employees have asked for the fitting factor to be increased to 3.68. The increase would bring the minimum salary up to $26,000 from its present level of Rs 18,000.

How is a DA hike determined?

Based on a formula, the federal government adjusts the DA and DR for workers. The formula is as follows:

Dearness Allowance Percentage is equal to ((Average of All-India Consumer Price Index for the last 12 months (Base Year 2001=100))/115.76×100.

Employees in the Central Public Sector: Dearness Allowance Percentage is calculated as follows: ((Average of All-India Consumer Price Index (Base Year 2001=100) for the previous three months -126.33)/126.33)x100.