Fitment Factor Update: Good News for central employees, there will be a direct increase of Rs 49420 in salary!

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Dearness Allowance: At present, the minimum salary of central employees is Rs 18,000 with a fitment factor of 2.57 times. There has been a demand for increasing it to 3.68 times for a long time. There is news that the government can triple the fitment factor by finding a middle ground.

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Fitment Factor Update: About a month is left for the new year to begin. With the beginning of the year 2023, the central employees are getting great news. The year-old wishes of lakhs of workers are likely to be fulfilled. Sources claim that work is going on on the file of fitment factor. But the decision on this is expected by the end of 2023. The increase in salary will be at the basic level.

How much is the fitment factor expected to increase?

With the increase of 4 percent in September, the dearness allowance of central employees has increased to 38 percent. It will be further increased in January and July. But the central employees have been demanding for a long time to increase the fitment factor under the Seventh Pay Commission.

Sources claim that the government is considering finalizing this issue in 2023 before the Lok Sabha elections. At present, the minimum salary of central employees is Rs 18,000 with a fitment factor of 2.57 times. There has been a demand for increasing it to 3.68 times for a long time. There is news that the government can triple the fitment factor by finding a middle ground.

How much will the salary increase?

Even if the fitment factor is 3 times, there will be a significant increase in the salary. For example, the employee whose basic salary is Rs 18,000, at present his salary is 18,000 X 2.57 = Rs 46,260. But when the fitment factor is tripled, the basic salary will be Rs 21,000. At the same time, the total salary apart from allowances will be 21000X3 i.e. Rs 63,000.

In addition to the allowances in the salary of central employees, there are other allowances. Salary also includes Provident Fund and Gratuity. EPF and gratuity of central employees are linked to basic salary and DA. This is the reason that a different formula is applied to calculate their EPF and Gratuity. Allowances and other deductions are done from CTC.

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