Fitment Factor Hike: Good news! The fitment can be increased from 2.57x to 3x – Check details


Fitment Factor Hike: This year was very special for the central employees. Overall, dearness allowance increased by 8 percent. But, many more gifts are awaited.

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Now only one and a half month is left for the year to end. After this the journey of the new year will begin. In the new year, the gifts will also be new and there will be more. After the increase in DA in October, now the dearness allowance of the employees will be revised in the new year. But, along with it, increase in Travel Allowance (TA), HRA is also possible. Also, the biggest update can be found on the fitment factor.

There has been no change in fitment for many years. Based on the recommendations of 7th CPC, Fitment Factor was implemented to increase the minimum salary of central employees. Due to imposition of fitment factor, the minimum salary of central employees directly increased from Rs 6000 to Rs 18000.

The fitment factor was determined to be 2.57 times. However, as per the recommendations, it was said to keep it at 3. If it had been 3 then the minimum salary would have been Rs 21,000. But, the central employees demanded to keep it at 3.68. Since then this matter is pending. Even after many years there was no change in the fitment factor. But, now good news is coming.

Fitment factor may increase

The good news for central employees is that their fitment factor can be revised in the new year. If sources are to be believed, the government is preparing to please the employees. In such a situation, their fitment can be increased from 2.57 times to 3 times. However, this will also be much less than the current demand. But, even if it is increased by 3 times, there will be a significant increase in the pay band of the employees.

What is Fitment Factor?

As per the recommendations of the 7th Pay Commission, the fitment factor is 2.57 times. While fixing the salary of central employees, apart from allowances like Dearness Allowance (DA), Traveling Allowance (TA), House Rent Allowance (HRA) etc.,

the basic salary of the employee is taken into account as per the fitment of 7th Pay Commission (7th Pay Commission latest update). The factor is calculated by multiplying by 2.57. For example- if the basic salary of a central employee is Rs 18,000, then excluding allowances his salary will be 18,000 X 2.57 = Rs 46,260. If this is considered as 3 then the salary will be 21,000X3= Rs 63,000.

Employees will get bumper benefits in this. When the salary of a central employee is fixed, then all kinds of allowances are added, like DA, TA, HRA, medical reimbursement etc. After increase in DA, TA is increased on the same basis. The increase in DA is also linked to TA. Similarly, HRA and medical reimbursement are also decided.

When all the allowances are calculated then the monthly CTC of the central employee is decided. After all the allowances and salary are finalized, now comes the monthly Provident Fund (PF) and gratuity contribution. PF and gratuity contribution is linked to basic salary and DA. PF and gratuity of a central employee is decided by its formula. When all the allowances and deductions are made from CTC then the take home salary of the central employee is decided.

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