The Union Cabinet led byPrime Minister Narendra Modi took a big decision on Thursday. Union Minister Ashwini Vaishnav announced that the 8th Pay Commission will be constituted. The purpose of this commission is to revise the salaries, pensions and allowances of central government employees and pensioners. This announcement has been made a few days before Budget 2025.

What is the 8th Pay Commission?

This commission will make recommendations for changes in the salary, dearness allowance (DA) and pension of central government employees and retirees. Allowances will also be added according to inflation.

How much will the salary increase?

Right now the government has not given any official percentage of salary hike. But, according to reports, based on the fitment factor, the minimum basic salary can increase from Rs 18,000 to Rs 51,480.

What is fitment factor?

This is a multiplier, on the basis of which salary and pension are calculated. It includes factors like inflation, financial condition of the government and the needs of the employees.

Who will get the benefit?

– About 50 lakh central government employees (including defence personnel).

– About 65 lakh pensioners (including defence retirees).

When will the 8th Pay Commission be implemented?

According to reports, this commission will be formed by 2026 and its recommendations are expected to be implemented from January 1, 2026.

What is the work of the Pay Commission?

This commission, which is formed every 10 years, reviews the salaries, allowances, pension and bonuses of government employees. It makes recommendations keeping in mind inflation, economic conditions and the state of the government treasury.

7 pay commissions have already been done

There have been 7 pay commissions since 1946. The recommendations of the 7th Pay Commission (implemented in 2016) are still being implemented. This new move by the Modi government will further the 10-year cycle.

This news has brought a big relief to government employees and pensioners. Now it remains to be seen what impact the commission’s recommendations have on the pocket of the common man.

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But according to the new report, the basic salary will increase by such a small amount. On implementation of the 8th Pay Commission, the salary of the employees may increase by an average of 13%. Till now it was expected that the basic salary of the employees could be 3 times. But the new report may shatter the dreams of the employees. However, this relief is not going to be available immediately, because its implementation is not possible before the end of 2026 or the beginning of 2027.

How much will the minimum wage increase?

According to the report of Kotak Institutional Equities, the fitment factor in the 8th Pay Commission can be kept at 1.8. This means that the new salary will be decided by multiplying the current salary by 1.8. According to this, the minimum salary can be increased from Rs 18,000 to Rs 30,000 per month. Till now there were reports that it could increase to Rs 51,000. Employees may be shocked by these new possibilities regarding salary.

What is the fitment factor?

The fitment factor is a multiplier, with the help of which the old salary is converted into the new pay scale. For example, in the 7th Pay Commission, this factor was 2.57, due to which the salary of many employees increased.

Why the delay in implementation?

According to the report, the government has announced the 8th Pay Commission in January 2025, but neither its Terms of Reference (ToR) have been decided nor the members of the commission have been appointed yet. Kotak estimates that it will take about one and a half years for the commission to report, and after that it will take 3 to 9 months for the government to approve and implement it.

How much will it cost the government?

According to Kotak, the implementation of the Pay Commission will cost the government an additional Rs 2.4 to 3.2 lakh crore, which will be about 0.6-0.8% of GDP. The biggest beneficiaries will be Grade C employees, who constitute 90% of the central government workforce.

Impact on spending and savings

Like the previous pay commissions, this time too there is a possibility of increase in expenditure in areas like cars, consumer goods (FMCG). Kotak says that this will also increase people’s savings. It is estimated that due to the increase in salary, there can be additional savings of Rs 1 to 1.5 lakh crore, which can be invested in the stock market, bank deposits and physical assets.

Preparation of Finance Ministry

In a written reply in Parliament on 21 July 2025, Minister of State for Finance Pankaj Chaudhary said that work has started on the 8th Pay Commission. The ministry has sought suggestions from the Ministry of Defense, Ministry of Home Affairs, Department of Personnel and the states. When the commission gives its recommendations and the government approves them, then it will be implemented.

A new pay commission comes every 10 years

The Government of India usually constitutes a Pay Commission every 10 years, which makes changes in the salary and pension of employees keeping in mind inflation and expenses. Earlier, the 7th Pay Commission was implemented in the year 2016.

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It is expected that in the 8th Pay Commission, DA may be merged with the basic salary. Also, there may be an increase in the structure of allowances.

Proposal to increase medical allowance three times

During the 34th SCOVA meeting held in Delhi on 11 March 2025, an important proposal came up regarding the fixed medical allowance of pensioners. In the meeting, it was suggested that the current medical allowance of Rs 1,000 should be increased to Rs 3,000 per month. Pensioners have been demanding an increase in this allowance for a long time in view of rising inflation and medical expenses. Now it has been recommended to include this proposal in the terms of reference of the 8th Pay Commission. It is believed that this change can come into effect from January 1, 2026.

There may be an increase in HRA and other allowances

It was also made clear in the SCOVA meeting that apart from salary, other allowances like House Rent Allowance (HRA), Travel Allowance (TA), Dearness Allowance (DA) and Medical Allowance should also be reviewed. If media reports are to be believed, employees living in metro cities are likely to get more HRA. At the same time, the calculation of travel allowance for employees posted in rural and semi-urban areas can be done in a new way. Along with this, the government is also considering abolishing some old allowances so that the system can be made better.

Will DA be merged into basic salary?

In the 7th Pay Commission, the fitment factor was set at 2.57. Then the minimum salary was fixed at Rs 18,000. Now it can go up to Rs 27000. In the 8th Pay Commission, the basic salary can be merged with DA. At present, the outline of the commission and the TOR are yet to be finalized. Usually, the time from the formation of a pay commission to the implementation of its recommendations is 18 to 24 months. In such a situation, the implementation date which is expected to be on 1 January 2026, now it seems that this date can also be extended.

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This change, which happens every six months, will also increase the salary of the employees, because with the increase in DA, allowances like House Rent Allowance (HRA) and Travel Allowance (TA) also increase.

The outstanding money for January and February will also be available

The government has also said that the arrears of January and February 2025 will be given along with the salary of March. This means that the employees will get the arrears of January and February months along with the increased salary in March.

When will the next hike be?

The next review of dearness allowance will be in November 2025, which will be considered effective from July 2025. This will be the last increase under the 7th Pay Commission, as the 8th Pay Commission is going to be implemented from January 2026.

Will DA be added to the basic salary?

The government has made it clear that at present there is no plan to add DA to the basic salary. Many employee organizations are demanding this, but till now there has been no green signal from the government. Earlier during the 5th Pay Commission, when the DA increased to more than 50%, it was added to the salary, but this was not done in the 6th and 7th Pay Commission.

What will happen in the 8th Pay Commission?

It has not yet been decided how DA will be calculated from 2026. At present, it is calculated on the basis of All India Consumer Price Index (AICPI-IW). But it is likely that the new pay commission may change it so that inflation can be taken into account in a better way.

What does the government say?

Minister of State for Finance Pankaj Chaudhary recently said in the Rajya Sabha that the government is not planning to include DA in the salary. This means that employees will have to wait till the recommendations of the 8th Pay Commission. This decision of the government has definitely given some relief to the employees, but for major changes in the salary, now everyone will have to wait for the decisions of the next Pay Commission.

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The post DA Hike: Dearness allowance has increased to 55%, will DA be added to basic salary now? first appeared on Rightsofemployees.com.

What was the question

The Finance Ministry under the Central Government said that there is no plan to merge DA with the basic salary. Minister of State for Finance Pankaj Chaudhary said that no such proposal is under consideration. Actually, Rajya Sabha member Javed Ali Khan had asked a question about this. The question was whether the government is considering merging 50% DA with the basic salary before the report of the 8th Pay Commission is prepared. In response to this, Pankaj Chaudhary said that no such proposal is under consideration.

When will the recommendations be implemented

Let us tell you that the government has not yet formally constituted the 8th commission. It is expected to be done by next month (April 2025). The recommendations of the 8th commission will be implemented after the end of the 7th Pay Commission in 2026. About 50 lakh central employees will benefit from the recommendations of the new pay commission. It is worth noting that the 7th Pay Commission was constituted in 2014 and its recommendations were implemented from January 1, 2016. Its term is ending in 2026.

10 years in the making

Usually, every 10 years the Central Government constitutes a Pay Commission to revise the salaries of its employees. Seven Pay Commissions have been constituted since 1947. The Pay Commission also recommends the formula for revision of Dearness Allowance and Dearness Relief for the purpose of compensating Central Government employees and pensioners for inflation. State governments also revise the salaries of their employees on the lines of the Central Pay Commission.

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How will income of Rs 14.65 lakh be tax free

Now suppose your annual salary is Rs 14.65 lakh. Out of this, half the money i.e. 50 percent goes in the basic salary. Whereas, the remaining 50 percent comes in the form of other items and allowances. We will further calculate the tax deduction according to the amount of basic salary.

Complete calculation of tax exemption

If the company contributes 12% of the basic salary to the Employees Provident Fund, then tax deduction can be claimed on it. This will be Rs 87,900. At the same time, tax exemption is also available on the company’s contribution to the National Pension System (NPS). This contribution will be 14% of the basic salary i.e. Rs 1,02,550. Also, you get a standard deduction of Rs 75,000 in the new tax regime. That is, this amount will be directly reduced from your taxable income.

After taking advantage of all these exemptions, your net taxable income will be Rs 11,99,550 lakh. The government has made income up to Rs 12 lakh tax free, so this means that you will not have to pay a single rupee tax. But, you have to keep in mind that this system will come into effect from the next financial year i.e. 2025-26.

How much tax will be saved in total

If the government did not make income up to Rs 12 lakh tax free and did not give the benefit of tax deduction on EPS and NPS, then an annual income of Rs 14.65 lakh would have to pay heavy tax. According to the new tax regime, 5 percent tax (Rs 20 thousand) will be levied on income of Rs 4 to 8 lakh.

While 10% tax (Rs 40,000) will be levied on income between Rs 8 lakh and Rs 12 lakh, 15% tax will be levied on income between Rs 12 lakh and Rs 14.65 lakh. If the standard deduction of Rs 75,000 is removed, then 15% tax i.e. Rs 28,500 will be levied on Rs 1.90 lakh. In this way, the total tax liability will be Rs 88,500, which you can easily save.

The role of EPS and NPS is important

Tax exemption is available on Employee Pension Scheme (EPS) under section 80CCD(1) of Income Tax and on contribution to NPS under section 80CCD(2). However, in the new tax regime, this exemption is available only on the company’s contribution, as it is considered as your direct income. Therefore, you are allowed to claim tax exemption on it.

NPS i.e. National Payment System is a retirement plan. Those who join this government scheme get pension after retirement. In this, the contribution is invested in the market and the return received from it is given as pension. NPS was started in 2004. It was opened for the general public in 2009.

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The post Income of Rs 14.65 lakh will be tax free in the new tax regime; complete calculation first appeared on Rightsofemployees.com.

Government employees and salary earners were demanding this for a long time. Let us know how much the implementation of this pay commission will affect the salaries of government employees. And by when can it be implemented.

What is the 8th Finance Commission?

This 8th Finance Commission will make changes in the pension, allowance and salary of the Central Government employees and pensioners. On one hand, the salary of the government employees will increase after the implementation of this pay commission, on the other hand, the dearness allowance will also be revised. Let us tell you, the Pay Commission advises the Central Government to revise the salary of government employees. This process is done every 10 years.

Minimum basic salary can be Rs 51480

The government has also not told how much percentage of salary will be increased. However, this is decided by the fitment factor. According to different reports, it can be increased from 2.57 to 2.86. If this happens, then according to the fitment factor of 2.86, the minimum basic salary can increase from Rs 18000 to Rs 51480.

What is the fitment factor?

The Pay Commission revises salaries, pensions and allowances through this fitment factor. This is the method by which the salary and pension of government employees are calculated. Factors like inflation, requirement of employees etc. are included in this.

50 lakh government employees can get the benefit of this pay commission. 60 lakh pensioners can also get its benefit. According to reports, this pay commission can be implemented on 1 January 2026.

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According to the circular issued by EPFO, in some special cases, if you have to change your job, then you will not have to fill any form to transfer PF account from your old or new company. This work will be completely automatic.

12% cut on basic salary

Let us tell you that till now, approval from the employer is necessary to transfer the PF account. Let us tell you that 12 percent of the basic salary of people working in the private sector is deducted for the EPF account. The same amount is deposited by the company in the PF account of the employee. Out of the money deposited by the employer, 8.33% is deposited in EPS (pension), the remaining 3.67% is deposited in EPF.

Crores of subscribers will benefit

Crores of subscribers will benefit from the changes made by EPFO ​​for account transfer. According to the circular issued by EPFO ​​on January 15, there will be no need to apply online from the old or new company to transfer the PF account. Now subscribers can themselves claim to transfer their account. Let us tell you which subscribers will benefit from EPFO’s circular?

• Transfer within UAN issued on or after 01/10/2017. If the same UAN is linked to multiple member IDs and linked to Aadhaar.
• Transfer between different UANs, both issued on or after 01/10/2017. If an employee has multiple UANs linked to the same Aadhaar, the system considers them as a single individual, allowing seamless transfer without any interference from the employer.
• Transfer within same UAN (UAN issued before 01/10/2017) For old UANs, PF transfer works only if the UAN is linked to Aadhaar and the name, date of birth (DOB) etc. details in the member ID match.
• Transfer between different UANs: Transfer between multiple UANs (one old) is allowed if both UANs are linked to the same Aadhaar and personal details (name, DOB, gender) match.

How to link UAN with Aadhaar

• First of all go to the e-service website and log in to your EPF account using UAN login credentials.
•  Now click on the KYC option under the ‘Manage’ menu.
• Select Aadhaar and enter your Aadhaar details.
•  Now click on the save option.
• Your Aadhaar will be validated using UIDAI data.
• Now after the completion of KYC, Aadhaar will be linked to the EPF account.

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In fact, central employees and pensioners will get a big relief from this. It is believed that the basic salary of the employees will increase to at least Rs 34,500. The employees believe that the increase in salary is very important to reduce the rising cost of living due to inflation.

The 7th Pay Commission was implemented in January 2016. The 7th Commission will end in 2026. After this commission, the demand for implementing a high pay commission has intensified. It is believed that the government will soon announce the 8th Pay Commission. It is being predicted that the 8th Pay Commission will increase the minimum basic pay from the current Rs 18,000 to Rs 34,500. In fact, the Pay Commission traditionally sets up a new Pay Commission by the Government of India every 10 years to adjust the remuneration of the civil service, reflecting the economic conditions.

When will the 8th Pay Commission be implemented?

Central employee organizations believe that the 8th Pay Commission can be established in 2025. The target is to implement it by January 2026. However, there has been no official confirmation about this.

The Economic Survey of 2024 suggested decoupling food inflation from India’s inflation target. According to the association, the DA hike formula is also likely to be changed under the 8th Pay Commission, due to which employees may get more benefits. Central government employees are hopeful that the arrival of the 8th Pay Commission will lead to a significant increase in their salaries.

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Central government employees got a big good news on the dearness allowance (DA) front on Wednesday before Diwali. The Union Cabinet approved a 3% hike in the DA of central employees and pensioners. This has made it 53% of the basic salary. In contrast, many states have given better DA hike to their employees. Some have increased the key allowance by up to 9%. Now the question must be arising in your mind that why is there so much disparity between the states and the Center in terms of DA hike? Let us try to understand this matter here.

The recommendations of the Seventh Central Pay Commission were implemented from January 1, 2016. Every time a new pay commission is constituted (usually every 10 years), the central government merges the DA with the basic pay of employees and starts from 0. The DA is increased twice a year in January and July.

The tenure of the Seventh Pay Commission has been an exception. The reason is that the Center had suspended DA hikes for 18 months during the Corona epidemic. But, apart from the three suspended hikes, the dearness allowance of central employees has been increased twice a year from January 2026, making it 53 per cent of the total basic salary.

Why is there a difference in DA hike between the Centre and states?

As mentioned above, the Centre has already implemented the 7th Pay Commission recommendations. While some states are yet to move beyond the 6th Pay Commission tenure. Since they are still following the recommendations of the previous Pay Commission, they decide the hike based on their own calculations and system.

For example, the DA of Jharkhand government employees has recently increased by 9% to 239% of the basic pay. Jharkhand is yet to move ahead with the 6th Pay Commission. As far as states that have implemented the 7th Pay Commission are concerned, they follow the Centre in announcing DA hikes.

As seen in the case of Chhattisgarh, state government employees have now received a 4% DA hike. This has made the total percentage 50% of their basic salary. While the Centre had announced a 4% DA hike for its employees in January. This made the total 50%.

Which states have increased DA?

Let us now take a look at the 5 states that have recently revised DA for their employees.

The Chhattisgarh government has announced a 4% hike in DA for its employees. This makes their total DA 50%. The hike will be effective from October 1. The Odisha government has also approved a 4% hike in DA for state government employees who are getting salary based on the Revised Pay Scale, 2017. This hike has increased the DA from 46% to 50%. It is effective from January 1, 2024.

The Himachal Pradesh government has also announced a 4% hike in DA for state government employees and pensioners. The state government has also announced that the salaries and pensions of employees and pensioners will be paid on October 28 before Diwali.

The Sikkim government has also increased DA by 4% for its employees. With the current hike, DA has become 50% of the basic pay of its employees. The state government has approved a 9% hike in dearness allowance (DA) for its employees. State government employees are still getting DA and other allowances based on the recommendation of the Sixth Pay Commission. With the 9% hike in DA, now state government employees will get 239% DA of the basic pay.

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There are many such features in this new pension scheme, which are expected to benefit the employees greatly. One such feature is the contribution from the government.

Government’s contribution

Under the Integrated Pension Scheme, the employee’s contribution for pension will be 10% of the basic salary and DA. The government will contribute 18.5%. The government contributes 14% to NPS, which has been increased to 18%. In this new pension scheme, provisions have also been made for family pension, guaranteed minimum pension and lump sum payment after retirement. Please note that the employees will have the option to choose between NPS and UPS only once.

How many employees benefit

Let us tell you that in the new scheme, the employee will get pension equal to 50 percent of the average salary of the last year after 25 years of service. Government employees who joined the service after January 2004 are covered under this scheme. 30 lakh central employees are expected to benefit from this scheme and if the state governments implement UPS, then a total of 90 lakh employees will be able to benefit from it.

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How much pension after 10 years of service

The pension will be paid proportionately for a minimum service period of 10 years. The New Pension Scheme also guarantees a minimum pension of Rs 10,000 per month on retirement after a minimum service of 10 years. Employees will be eligible for a lump sum amount in addition to gratuity at the time of retirement.

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Shiv Gopal Mishra, Secretary, National Council (Staff Side, Joint Consultative Machinery for Central Government Employees), has urged the government to constitute the 8th Pay Commission (CPC) as soon as possible. He has said that both government earnings and inflation have increased significantly since the Corona epidemic. Due to this, the gap between dearness allowance (DA) and rising prices of essential commodities is increasing. He stressed that the last salary revision took place in 2016. Since then, inflation has significantly reduced the purchasing power of employees and pensioners.

What is a Pay Commission?

The Pay Commission is a body appointed by the government. It reviews the salary structure, allowances and benefits of central government employees. Then recommends changes in them. Usually this commission meets every 10 years. This commission assesses factors like inflation. On February 28, 2014, the then Prime Minister Manmohan Singh constituted the 7th Pay Commission. This commission submitted its report on November 19, 2015. Its recommendations were implemented from January 1, 2016.

When will the 8th Pay Commission be formed?

Now all eyes are on the 8th Pay Commission. It is estimated that it will be formed by January 1, 2026. This will happen 10 years after the previous commission. There has been no official announcement from the Center yet. But, with the Modi government coming to power for the third time after the 2024 Lok Sabha elections, more than 1 crore central employees are very curious about the Eighth Pay Commission.

What is the new proposal?

According to a report by our partner Economic Times, Shiv Gopal Mishra, in a letter to the Cabinet Secretary, has stressed the urgent need for a new pay commission to address these economic realities. He said that government revenue has doubled since 2015. Tax collection has also increased significantly. But, the salaries of central government employees have not increased according to inflation.

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Mishra said, ‘According to the budget data, the revenue of the central government has doubled from the year 2015 to 2023. We can see that the revenue collection has increased significantly. The actual revenue of the central government has increased by more than 100%. Therefore, the central government has more capacity to pay as compared to the year 2016. GST collection has also increased to Rs 1.87 lakh crore in April 2023. Income tax collection has been the highest in the year 2022-23. Gross personal income tax collection (including STT) (provisional) in the financial year 2022-23 is Rs 9,60,764 crore. This shows an increase of 24.23% compared to the previous year.’

The number of central government employees has decreased by about 10 lakh in the last decade. This has increased the workload on existing employees. The letter also recommends periodic review of the pay matrix. It says that one should not wait for a full 10 years for this. The recommendation proposes the Akroyd formula as a standard. This formula takes into account the changing prices of essential commodities. It provides a more dynamic approach to salary adjustment.

The challenges of NPS are also mentioned

Apart from this, Mishra also highlighted challenges like National Pension System (NPS). Under this, 10% of the basic salary and DA of the employees is deducted. This reduces their salary in hand. Despite the demands to restore the old pension scheme for employees recruited after 2004, the government has not yet agreed.

The letter said, ‘The government has neither accepted the above recommendations nor constituted the 8th Pay Commission. The DA of central government employees and pensioners has already reached 50% from 1.1.2024. Considering inflation and price rise, the DA component will cross 50%. It is also worth mentioning here that more than 20 lakh civilian central government employees are covered under the National Pension System.

They have to contribute 10% of their basic pay and DA to NPS every month. This significantly reduces their in-hand salary. The government has not yet agreed to our demand to abolish NPS and restore pension under CCS (Pension) Rules, 1972 (now 2021) for central government employees recruited on or after 1.1.2004.’

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There is a demand for a new pay commission for central employees after the 7th Pay Commission. However, it is difficult to say whether this will happen or not. But, in the meantime, a good news is coming. Based on the recommendations of the 7th CPC, there may be a consideration to increase the fitment factor to increase the minimum salary of central employees. The fitment factor is 2.57 times the basic salary.

But, it can be increased to 3 times. However, this demand has been going on continuously since the year 2017. But, no decision has been taken on this yet. If sources are to be believed, the government is in this mood soon. If the fitment is 3 times, then the minimum salary of central employees can reach Rs 27,000. Currently, the minimum salary of central employees at Level-1 is Rs 18,000.

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Fitment Factor is applied on basic salary

The fitment factor plays the biggest role in deciding the salary of central government employees. According to the recommendations of the 7th Pay Commission, the total salary of central government employees is determined by the basic salary and fitment factor in addition to allowances. This means that the salary of central government employees is increased by calculating it by two and a half times.

What is the role of Fitment Factor?

According to the recommendations of the 7th Pay Commission, the fitment factor is 2.57. While deciding the salary of central employees, apart from allowances such as dearness allowance (DA), travel allowance (TA), house rent allowance (HRA), the basic salary is multiplied by the fitment factor 2.57. For example, if the basic salary of a central employee is Rs 18,000, then his salary excluding allowances will be Rs 18,000 X 2.57 = Rs 46,260. If the fitment factor is 3, then it will definitely be beneficial. Employees have been demanding for a long time that the fitment should be increased.

Calculation of Allowances (DA Calculation)

When the salary of Central government employees is fixed without allowances, then all kinds of allowances are added to it, such as DA, TA, HRA. DA is given to central government employees to protect them from the loss caused by inflation. It is fixed twice a year. The first time it is fixed during January to June and the second time it is fixed for the period from July to December.

DA may increase by 3 percent more

The government calculates the average inflation of the first 6 months of the year, in which January to June is counted. After this, the average of inflation is calculated in the second half. On this basis, DA increases. DA is always higher than the average inflation. Currently, the AICPI index is at 139.4 points. Therefore, it is being estimated that dearness allowance may increase by 3 percent in July 2024. After the increase in DA, TA increases on the same basis. The increase in DA is also linked to TA. Similarly, HRA is also decided. The monthly salary of the central employee is prepared after all the allowances are calculated.

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Under this, employees will get a guarantee of up to 50 percent of the last basic salary as pension. In simple language, 50 percent of the last basic salary of the employee before retirement will be given as monthly pension.

Panel to be formed in 2023

In fact, during the second term of the Narendra Modi government, a panel was constituted in March 2023 under the chairmanship of Finance Secretary TV Somanathan. This panel was formed to suggest ways to increase pension benefits under NPS for government employees without returning to the Old Pension System (OPS). The government took this decision at a time when many states have started abandoning NPS and returning to OPS.

Also Read: HDFC Bank increased fixed deposit rates on select tenues. All you need to know

Mention of Andhra Pradesh model

According to the news of Financial Express, the panel has submitted its report to the government in the month of May. This report is largely influenced by the Andhra Pradesh NPS model implemented in 2023. It can be called a mixed model of old and new pension scheme. Under the Andhra Pradesh Guaranteed Pension System (APGPS) Act, 2023, government employees will be given 50 percent of their last salary as monthly pension. This will also include dearness relief i.e. DR. Apart from this, the spouse of the deceased employee is guaranteed a monthly pension of 60 percent of the guarantee amount.

What does this proposal of NPS say?

Under the new proposal, central employees will get a guaranteed pension of up to 50 percent of the last basic salary. Any shortfall in the pension fund required to meet the guaranteed pension amount will be covered from the central government budget. This can benefit about 8.7 million central and state government employees. These will be employees who have been registered in NPS since 2004.

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Now there have been media reports that the basic salary of central government employees and pensioners has increased during the next increase in Dearness Allowance or Dearness Relief. Usually, DA and DR of central government employees and pensioners increase from July.

With DA and DR touching the limit of 50%, there is speculation that DA and DR will automatically be added to the basic salary. This will increase the basic salary of lakhs of central government employees and pensioners in the country. Are central government employees and pensioners expecting an increase in basic salary from July 2024? Will this change happen in future? This is the question being asked by lakhs of central government employees.

Also Read: SEBI Rule Change: Stocks to be credited directly to your Demat a/c, not via broker

Will DA and DR be added to the basic salary?

Speculations began when the issue of merging DA with basic salary after crossing the 50% limit came up. The Fifth Pay Commission report (para 105.11) had recommended merging DA with basic salary and terming such merger as dearness pay. Following this recommendation, 50% of DA was merged with basic salary to form dearness pay for the purpose of calculation of allowances and retirement benefits in 2004. But this was later changed. However, this change will not happen automatically. The government will have to take a decision on this.

Right now dearness allowance is 50%

Central Government Employees are getting dearness allowance at the rate of 50 percent. The government had increased the dearness allowance from 46 percent to 50 percent in March. This was implemented from January 1, 2024. However, when DA increased to 50 percent, it was believed that it would now be added to the basic salary and DA would be calculated separately. However, this will not happen. Even if DA is 50 percent, it will not be added to the basic salary. Even after the DA increases next time, it will be calculated on the basis of basic salary.

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Sources claim that this time the basic salary will increase to Rs 26000. Its draft has been prepared. It will be announced in the budget. However, no such announcement has been made officially yet. If this happens then approximately Rs 8000 more salary will be transferred to the account of each employee.

There is full hope of increase in basic salary

Actually, there has been no consensus regarding the fitment factor for many years. Due to which the decision to increase basic salary is continuously getting delayed. Sources claim that the Finance Minister will present the interim budget on February 1, in which the fitment factor may be announced. Let us tell you that at present the salary of about 50 lakh central employees of the country is calculated at the rate of 2.57 percent. That means, if someone’s grade pay is Rs 4200, then his basic salary will be Rs 15,500. After that various types of allowances are added.

Demand for so much fitment factor

Let us tell you that the employee association is demanding increase in fitment factor in the long run. That means there is a demand that the fitment factor should be increased to 3.68. If this happens then the basic salary will increase from Rs 18,000 to Rs 26,000. After this, there will be a bumper increase in the salary of central employees. Sources believe that this is an election year.

Only one month is left for the presentation of the interim budget. In which an announcement can be made regarding fitment factor. However, no such information has been received officially yet. But the concerned officials claim that the basic salary of Rs 26000 is to be announced in this budget. Its complete file is ready. Only the announcement is yet to be made.

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In July last year, the central government had revised the fitment factor. In this, the basic salary has increased from Rs 18,000 to Rs 26,000. Government employees have been demanding to increase the fitment factor for a long time.

There will be revision in the fitment factor –

At present the fitment factor of the government employee is 2.57 per cent. This time it is expected that the fitment factor may increase by 3.68 per cent. This means that the basic salary of the employee will be 26 thousand rupees. Suppose the basic salary of an employee is Rs 18,000, then if the allowance is left out of it, then by adding the fitment factor, his salary will be Rs 46,260.

Demand for change in fitment factor is increasing-

Government employees are demanding to increase the fitment factor. With the increase in the fitment factor, there will be an increase in their basic salary. With the increase in the fitment factor, along with the basic salary of the employee, many other allowances will also increase.

There will be an increase in DA next month –

In the month of July, the central government can give another good news to the employees. The government can increase the dearness allowance of the employee by 3 to 4 percent. This will increase the salary of the employee. At present, the government is considering increasing the DA from 45 per cent to 46 per cent.

How DA hike is calculated-

The Central Government calculates DA and DR on the basis of a fixed formula. The government calculates DA on the basis of…

Dearness Allowance percentage = ((Average of All India Consumer Price Index numbers for last 12 months (Base year 2001=100) -115.76)/115.76)x100

For Central Employees: Dearness Allowance Percentage = ((Average of All India Consumer Price Index for last 3 months (Base Year 2001=100) -126.33)/126.33)x100

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Two big good news has come for the central employees. There is going to be a tremendous increase in the salary of government employees. Central employees, who have been demanding an increase in the fitment factor for a long time, may hear good news on this front. Central employees can get both these good news in the next month of July.

fitment factor of central employees will increase

According to media reports, the announcement to increase the fitment factor of central employees can be made by next month. It is being said in the reports that if everything goes well then the fitment factor will increase further. After this, the minimum pay of central employees will increase from Rs 18,000 to Rs 26,000 per month.

Employees demanding fitment factor 3.68 times

According to the reports, in view of the demand to increase the fitment factor of central employees, the government may soon make a big announcement on this. Central employees are demanding increase in fitment factor from 2.57 to 3.68 times. If the government accepts this demand, then there will be a tremendous increase in the salary.

There will be a 4 percent increase in dearness allowance

Looking at the current figures of inflation, it is being estimated in the media reports that there may be an increase of up to 4 percent in the dearness allowance of central employees. That is, his DA will increase from 42 percent to 46 percent. Due to this, a bumper increase in the salary of the employees can be seen. Central employees are expected to get two benefits of increase in fitment factor and dearness allowance. Means, DA will increase as well as increase in fitment factor will increase basic salary.

These state governments increased DA

Odisha government has increased the salary of its employees in the past. The state government has increased the dearness allowance of the employees from 38 per cent to 42 per cent. It has been implemented from January 2023. This will benefit around 7.5 lakh employees and pensioners of the state government. Apart from Odisha, the government of Rajasthan, Madhya Pradesh, Haryana has also increased the DA of the employees.

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The kind of discussions that are going on in the country regarding the National Pension System, meanwhile, speculations are being made that the government may soon implement the Eighth Pay Commission across the country. Modi Government can soon give green signal to the 8th Pay Commission. Eighth Pay Commission is to be constituted in this year i.e. 2023 itself.

The recommendations of the new pay commission are applicable after 10 years.

Let us tell you that the 7th Pay Commission was formed in the year 2013 and it was implemented in the year 2016, after which there was a huge increase in the salary of the central employees. Now once again the government employees are going to have fun. Let us tell you that the recommendations of the new pay commission are implemented after every 10 years.

Good news can be received before the Lok Sabha elections, according to the information received from the sources, the Central Government may soon announce the 8th Pay Commission. Lok Sabha elections are to be held across the country next year, so before that the government is planning to give a big gift to the employees.

Now the minimum basic salary is Rs 18,000.

At present, the minimum salary of central employees ranges from Rs 18,000 to Rs 56,900 per month. After the implementation of the new pay commission, the minimum salary of the employees will increase. Along with this, the fitment factor in the Pay Commission report may also increase.

The union will talk to the government

It is being told by the Central Employees Union that the union will soon talk to the government regarding the demand for the 8th Pay Commission. At the same time, a memorandum will also be submitted to the government for this. If the government refuses to accept the demands, the union may consider an agitation, in which central employees as well as ex-pensioners may participate.

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According to media reports, from July 1, an announcement can be made to increase the dearness allowance of central employees. However, so far no announcement has been made by the government regarding the DA hike.

Let us inform that the DA of central government employees increases twice a year. One from January and the other from July. The DA hike, which came into effect from January 2023, was announced in March 2023. The government had increased DA by 4% due to which DA has increased to 42%. Now the government will increase DA for the first time in the current financial year in July.

According to the April data of AICPI, there may be an increase of 3 to 4 percent in the salary of the employees. However, it will also depend on the figures for May and June. If the AICPI figures for May and June are good, then 4 percent dearness allowance and dearness relief (DR) may increase.

How much will DA increase

if there is an increase of 4% in DA, then the DA of the employees will be 46%. According to media reports, the AICPI figure for April is 134.2 points and the DA score is 45.06. The index is likely to reach 46.40 during May and June. This means that a 4 per cent hike in DA is almost certain.

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The first gift in July could be an increase in dearness allowance and the second increase in fitment factor. In view of the demand of central employees under the 7th Pay Commission, the central government may announce an increase in the fitment factor in July. Significantly, the central employees have been demanding to increase the fitment factor for a long time. Actually, there is an increase in the basic salary under the fitment factor.

7th Pay Commission: c

At present, fitment factor at the rate of 2.57 per cent is being given to central employees under the 7th Pay Commission. There is a demand to increase it to 3.68 times. Increasing the fitment factor from 2.57 to 3.68 will increase the minimum basic pay from Rs 18,000 to Rs 26,000. If the central government accepts this demand, then there will be a tremendous increase in the minimum wages of the central employees.

Basic pay will be calculated at 3.68 per cent instead of 2.57 per cent.

The last time the government increased the fitment factor was in the year 2016. The 7th Pay Commission was also implemented in the same year. At that time the minimum wage of the employees had come down to Rs 18,000 directly from Rs 6000. Whereas, the upper ceiling was increased from Rs 90,000 to Rs 2.5 lakh. Now the government can increase the salary of central employees again this year.

Basic Pay Rs.18000 to Rs.26000

The fitment factor determines the basic pay for all central government employees. This time, if there is a possible increase in the fitment factor, then the minimum basic pay will increase from Rs 18000 to Rs 26000.

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However, it is expected to be announced by September. The dearness allowance of government employees is increased every six months. Due to increase in DA in proportion to inflation, there is a good increase in salary. The salary of the employees increases on the basis of fitment factor, appraisal. Salary will automatically increase as the fitment factor increases. The news is that there is going to be a tremendous increase in the basic salary of the employees without fitment factor and appraisal.

Salary will increase due to merger in DA Basic

The 7th Pay Commission was implemented by the government in 2016. At that time dearness allowance was made zero. Due to zero DA, the previous dearness allowance of the employees was added to the basic salary. Now this situation is going to happen once again. With this, the minimum basic salary of the employees will increase from Rs 18000 to Rs 27000. The basic will increase due to the merger of the dearness allowance with the basic salary.

Long wait for salary revision

It is written in the memorandum of the year 2016 that it will be reduced to zero when the dearness allowance (DA) is 50 percent. That is, the dearness allowance that is being received now is 42 percent. After zero it will start from 1 percent, 2 percent. Actually, as soon as there is 50 percent dearness allowance (DA Hike), it will be added to the basic salary. Due to this, the employees do not have to wait long for salary revision.

By how much will the salary of the employees increase?

Presently, there is a basic salary of Rs.18000 in Pay Band Level-1. At present, dearness allowance of Rs 7560 is available on this. But, on 50 percent dearness allowance, this amount will increase to Rs.9000. The rule is that when there is 50 percent DA, it will be reduced to zero by mixing it with the basic salary. That is, the current basic salary of Rs 18000 will increase to Rs 27000. After this, the dearness allowance will be calculated on the basic salary of Rs.27000.

When will the basic salary increase?

At present, central employees are getting salary according to 42 percent dearness allowance. Based on the revision of July 2023, it will increase by 4 percent to 46 percent. After this, if dearness allowance increases by 4 percent even in January 2024, then it will become 50 percent. If it is 50%, the dearness allowance will become zero from January 2024 itself. That is, from July 2024, the employees will get the benefit of increased basic salary and on the basis of this they will also get DA.

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The kind of discussions that are going on in the country regarding the National Pension System, meanwhile, speculations are being made that the government may soon implement the Eighth Pay Commission across the country. Modi Government can soon give green signal to the 8th Pay Commission. Eighth Pay Commission is to be constituted in this year i.e. 2023 itself.

The recommendations of the new pay commission are applicable after 10 years.

Let us tell you that the 7th Pay Commission was formed in the year 2013 and it was implemented in the year 2016, after which there was a huge increase in the salary of the central employees. Now once again the government employees are going to have fun. Let us tell you that the recommendations of the new pay commission are implemented after every 10 years.

Good news can be received before the Lok Sabha elections, according to the information received from the sources, the Central Government may soon announce the 8th Pay Commission. Lok Sabha elections are to be held across the country next year, so before that the government is planning to give a big gift to the employees.

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Now the minimum basic salary is Rs 18,000.

At present, the minimum salary of central employees ranges from Rs 18,000 to Rs 56,900 per month. After the implementation of the new pay commission, the minimum salary of the employees will increase. Along with this, the fitment factor in the Pay Commission report may also increase.

The union will talk to the government

It is being told by the Central Employees Union that the union will soon talk to the government regarding the demand for the 8th Pay Commission. At the same time, a memorandum will also be submitted to the government for this. If the government refuses to accept the demands, the union may consider an agitation, in which central employees as well as ex-pensioners may participate.

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The Ministry of Labor said, it has been decided to take an additional contribution of 1.16 percent out of the total 12 percent contribution of the employers in the provident fund.

At present, the government pays 1.16 per cent of the basic salary up to Rs 15,000 as subsidy for contribution to the Employees’ Pension Scheme (EPS). This provision is retrospective as per the orders given by the Supreme Court, that is, it is applicable from the previous date. Meaning, this provision will come into effect from September 1, 2014, which is the cut-off date as per the Supreme Court order, i.e. employer’s contribution of 12% plus 1.16% will be deducted from the employee’s PF fund retrospectively.

So far more than 12 lakh applications have been received, if you also want that after retirement you get more pension every month, then you can opt for EPS-95. For this, you have to apply on the Integrated Member Portal of EPFO. EPFO has so far received more than 12 lakh applications for higher pension. This number is equivalent to 35 per cent of the total eligible employees.

How to Apply Online

First of all you have to e-Sewa portal – https//unified portal-mem.epfindia.

gov.in/memberinterface/. Here you have to click on Pension on Higher Salary.
A new page will open where 2 options will appear. The second option in this is to apply for the combined option. Select the option below here.
After this you will see a new home page. Here you have to enter your UAN, Aadhaar number, date of birth, mobile number and captcha code by clicking on the option on the left side.
After filling the form, OTP option will appear below, click on it. An OTP will come on your mobile number. Submit it after verifying it.

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The post EPFO Update: This is how EPFO clear the confusion of contribution to increase pension first appeared on Rightsofemployees.com.

The kind of discussions that are going on in the country regarding the National Pension System, meanwhile, speculations are being made that the government may soon implement the Eighth Pay Commission across the country. Modi Government can soon give green signal to the 8th Pay Commission. Eighth Pay Commission is to be constituted in this year i.e. 2023 itself.

The recommendations of the new pay commission are applicable after 10 years.

Let us tell you that the 7th Pay Commission was formed in the year 2013 and it was implemented in the year 2016, after which there was a huge increase in the salary of the central employees. Now once again the government employees are going to have fun. Let us tell you that the recommendations of the new pay commission are implemented after every 10 years.

Good news can be received before the Lok Sabha elections, according to the information received from the sources, the Central Government may soon announce the 8th Pay Commission. Lok Sabha elections are to be held across the country next year, so before that the government is planning to give a big gift to the employees.

Now the minimum basic salary is Rs 18,000.

At present, the minimum salary of central employees ranges from Rs 18,000 to Rs 56,900 per month. After the implementation of the new pay commission, the minimum salary of the employees will increase. Along with this, the fitment factor in the Pay Commission report may also increase.

The union will talk to the government

It is being told by the Central Employees Union that the union will soon talk to the government regarding the demand for the 8th Pay Commission. At the same time, a memorandum will also be submitted to the government for this. If the government refuses to accept the demands, the union may consider an agitation, in which central employees as well as ex-pensioners may participate.

The post 8th Pay Commission: Good news for Employees! Big update on 8th Pay Commission, basic salary will be Rs 26,000, see details first appeared on Rightsofemployees.com.

New preparations are being made by the government for this. Although it has not been officially announced yet, but it is believed that the basic salary will be increased soon. With this, the basic salary can increase from 18000 to 26000 rupees.

Decision on increasing the fitment-

According to media reports, in view of the upcoming elections, the Modi government may take a decision on increasing the fitment. Along with this, new formulas can also be prepared to increase the salary. At present the fitment factor for central employees is 2.57 per cent dearness allowance, 42 per cent employees are demanding that their fitment factor be increased to 3.68.

The fitment factor will increase to 3.68 percent.

The same possibility is being expressed that in view of the upcoming elections, the fitment factor can be increased from 2.57 years to 3 percent or 3.68 percent under the Seventh Pay Commission. It is believed that in 2024, the fitment factor can be increased based on the recommendation of the Seventh Pay Commission. Although elections are to be held in 2024. Hence the fitment factor can be implemented from 2026 onwards.

If sources are to be believed, the fitment factor will not increase in the year 2023, but it can be increased by reviewing it in 2024. However, no clarification has been given by the government on this yet. This will be discussed by the department. Also the recommendation can be sent to the Finance Ministry. At the same time, the discussion of setting up a new pay commission next year is getting intensified.

Will tell that the fitment factor is considered very important for central employees. On the basis of this, the minimum salary of the employees is fixed. According to the recommendation of the Seventh Pay Commission, the basic salary of central employees increases. Let us inform that earlier the fitment factor was increased by more than two and a half times.

Basic salary will increase from ₹18000 to 21000-

For employees, if the existing fitment factor of 2.57 is increased to three, then the basic salary will increase from ₹ 18000 to ₹ 21000. If it is increased to 3.68 as per the demand of the employees, then the salary will increase to ₹ 25760. On the other hand, if this happens, 68 lakh employees will get its benefit.

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Rules changed for government employees to invest in stock market

The Department of Personnel and Training (DoPT), in a recent circular, said that members of AIS will have to furnish details of their investments in stocks or shares to the prescribed authority. There is a rule that if there is an investment of more than six months’ basic salary during a calendar year, then it has to be informed.

You can invest in share market as easily as 6 months basic salary

This information will have to be given by January 31 of the next year. This means AIS members can invest less than their six months’ basic salary in the stock market without informing the authority. The salary paid to the members of AIS is based on the recommendations of the Seventh Pay Commission.

These will be the new rules

In terms of Rule (14(1)) of the AIS (Conduct) Rules 1968 to enable the Administrative Officers to monitor transactions in any stock, share or other investment etc. in respect of all Members. Matters of the India Services (AI) It has been decided that the total transactions in stocks, shares or other investments etc. exceeding six months basic pay of a Government servant shall be reported in a prescribed proforma once a year. Will be

Information to be given under these rules

AIS member will also have to inform the authority in case the investment is more than 2 months basic salary. The DoPT also stated in the notification that it is also clarified that since shares, securities, debentures etc. are deemed to be movable property as per Explanation-I under rule 16 of the AIS (Conduct) Rules, 1968, if A person’s transaction is more than two months’ basic salary.

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Along with this, the discussion of revision in the basic salary of the employees has started. That is, the new financial year is going to be wonderful for the central government employees. The government is moving towards implementing a new formula by abolishing the Pay Commission in the coming year.

There can be a big change in the salary of central employees-

Under this change, a change in the fitment factor of the employees is expected. Due to this, there can be a big jump in the salary of the employees. Central employees have been demanding for a long time that their fitment factor should be revised again.

According to sources, the government may increase the fitment factor by reviewing it in the new financial year. The current fitment factor of government employees is 2.57 times.

Salary may change by Rs 8,000-

There are two sides regarding the change in the fitment factor of central employees. The first party says that the fitment factor should be increased from the existing 2.57 times to 3 times. This will increase the basic salary of the employees by about Rs 3,000.

At the same time, the other side says that according to the recommendations of the Seventh Pay Commission, the fitment factor should be 3.68 times. Due to this, there can be a change of about 8000 rupees in the salary of the employees.

Know- How will the salary increase?

At present, the minimum salary of central employees is Rs 18,000. After the decision on the fitment factor, it will be increased to Rs 26 thousand. However, no official information has come from the government on this.

Presently on the basis of fitment factor 2.57 times and basic pay of Rs 18000 excluding other allowances Rs 18000 X 2.57 = Rs 46260 but if it is increased to 3.68 then the salary of employees excluding other allowances will be Rs 26000 X 3.68 = Rs 95680.

It is noteworthy that in the past, the central government has announced an increase in the dearness allowance of its employees, after which the dearness allowance has increased to 42 per cent. Earlier dearness allowance was available at 38 per cent.

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In this the fitment factor can be changed. Due to its change, there can be a big jump in the salary of the employees. For a long time there has been a demand of central employees that their fitment factor should be revised. According to sources, next year the government may increase the fitment factor by reviewing it. The current fitment factor is 2.57 times.

How much can the fitment factor increase

There are two sides to the increase in fitment factor. The first fitment factor should be increased from 2.57 times to 3. This will increase the basic salary of the employees by about Rs 3000. On the other hand, the fitment factor should be increased to 3.68 times according to the recommendations of the 7th pay commission. Due to this, there will be a difference of about 8000 rupees in the salary of the employees. Actually, its calculation varies according to the pay band.

7th Pay Commission Fitment Factor 2.57

After the pay commission, the formula of fitment factor was adopted to decide the basic salary of the employees. As per the recommendation of the 6th Pay Commission, the fitment ratio was 1.86. But, with the implementation of the 7th Pay Commission, a common fitment benefit of 2.57 was implemented across all pay bands of central government employees. This was recommended by the Pay Commission itself.

How is fitment factor calculated in 7th CPC?

Assuming Basic Pay as on 31.12.2022 (100%)= 1.00
Dearness Allowance as on 31.12.2022 (125%)= 1.25
Total (Basic Salary+DA)= 2.25
7th CPC recommended increase of 14.29% on total sum (Basic Pay +DA) = 0.32
Fitment factor= 2.57

How is the basic salary determined by the fitment factor?

What will be the basic salary after increasing the fitment factor?

Salary will increase by Rs 12604

Salary will be revised for all pay bands on change of fitment factor. The difference in basic salary will be clearly visible. In both the tables given above, we have shown by calculation that how and how much difference will there be in the salary. The fitment factor in the first table is 2.57. At the same time, in the second table, 3.68 has been placed with an expected increase. If we look at Grade Pay 2800, then there will be a difference of Rs 12,604 in the total salary after changing the fitment. Means his salary will be Rs 41,804.

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It is being said that the government may announce an increase in the DA of government employees even before Holi. It is being told that a meeting of the Modi cabinet is going to be held on March 1, in which a decision will be taken in this regard. Please tell that in view of the inflation of industry workers, this time dearness allowance can be increased by 4%.

7th pay commission pay matrix Let us tell you, the increase in DA of central employees is done in view of inflation. The higher the inflation, the higher the DA increases. This is the retail inflation for industry workers (CPI-IW). Considering the retail inflation of industry workers, this time DA is expected to increase by 4.23%. At present the DA of central employees is 38%. After an increase of 4 percent, it will become 42%.

If the basic salary of a central employee is Rs 18,000 a month, then according to 38% DA, he is getting dearness allowance of Rs 6,840. This time DA can increase by 4%. On a basic salary of Rs 18,000, it will become Rs 720. In this way, after the increase in DA, an employee with a basic salary of Rs 18,000 will get dearness allowance of Rs 7,560.

Know the mathematics of increase in salary

Suppose the basic salary of an employee is Rs 18,000 per month.
Monthly Dearness Allowance at the current rate of 38%: 18000 x 38 /100 = 6,840
Annual Dearness Allowance at current rate of 38%: 6,840 x 12 = 82,080
Monthly Dearness Allowance after DA hike: 18000 x 42 / 100 = 7560
Annual DA after DA increase: 7560x 12= 90,720

The post DA Increased: Government employees will get an increase in salary up to 91000 after 4 percent increase in DA, know complete calculation first appeared on Rightsofemployees.com.

This time the Dearness Allowance (DA) may increase by 4 percent. At present, central employees are getting 38 percent dearness allowance, which is expected to increase to 42 percent. But the employees will get this in the salary for the month of March only.

Dearness allowance will be applicable from January 2023.

The increased DA will be paid to central employees from January 2023. That is, the arrears of January and February will be given. Dearness allowance of government employees and pensioners is increased twice a year. This necklace is applicable from January and July of the year. The AICPI index has come down to 132.3 points in December. On increasing the dearness allowance by 4 percent from the government, dearness allowance of Rs 7560 will be available on the basic salary of Rs 18000.

It will increase annually by 9 thousand rupees, till now according to 38 percent, this dearness allowance becomes 6840 rupees. Talking annually, this increase works out to about Rs 9,000. Similarly, if we look at the figure of DA hike on the maximum basic salary of Rs 56,900, then it is Rs 2276 a month (Rs 27,312 a year). At present, the employees get dearness allowance of Rs 21622 per month, which will increase to Rs 23898 per month.

Will also get arrears of two months

Along with getting the money for DA hike in March salary, arrears of two months will also be available. Accordingly, good money will increase in the account. Apart from this, it is also being claimed in the media reports that the government can also fulfill the old demand of increasing the fitment factor of central employees after Holi. If a decision is taken on the fitment factor, there will be a significant increase in the salary of the employees.

At present, the basic salary of the employees is Rs 18,000. After the change in the fitment factor, it will increase to Rs 26,000. At present, on the basis of fitment factor 2.57 times and basic salary of Rs 18000, excluding other allowances, Rs 18,000 X 2.57 = Rs 46260. But if it is increased to 3.68, then excluding other allowances, the salary of the employees will be 26000 X 3.68 = Rs 95680.

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If media reports are to be believed, the government may increase the DA ie Dearness Allowance-DA of the employees before Holi. The government can increase the dearness allowance from 38 percent to 42 percent. The government will implement these new rates from January 1, 2023.

Government will increase dearness relief

Along with dearness allowance, the central government will also increase Dearness Relief (DR). Dearness relief is given to the pensioners to deal with inflation and dearness allowance is given by the government to protect the employees from rising inflation. This will benefit lakhs of employees and pensioners of the country.

Salary and pension will increase so much

Right now the DA of the employees is 38 per cent. If there is an increase of 4 percent in it, then it will increase to 42 percent. Suppose if your basic salary is Rs 18,000 per month under Level 1 pay scale, then your DA will increase to Rs 7,560. That is, there will be a total increase of Rs 720 per month in DA. According to 38 per cent DA, the employees are currently getting Rs 6,840 DA. In the same way, the pension received by the pensioners will also increase. His DR is calculated on the basis of basic pension.

The government does revision in DA and DR twice a year.

The government usually revises the rates of DA and DR every six months. It is given due to inflation i.e. to deal with inflation. If you look at the records of the previous years, the government has increased the dearness allowance in January and July. The DA paid to the employees along with the salary comes fully in the taxable income. The Income Tax Act states that the tax liability for DA and salary is required to be disclosed in the return filed.

DA was increased before Diwali last year

The last revision in DA was done on 28 September 2022, which was considered to be applicable from 1 July 2022. The Center had raised DA by four percentage points to 38 per cent based on the percentage increase in the 12-monthly average of the All India Consumer Price Index. Now it is expected to grow by 4 percent again. If this happens, it will become 42 percent.

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This time dearness allowance and dearness relief are expected to increase by 4 percent. With this it will increase to 42 percent. Employees will get the benefit of both increased DA and arrears in the March salary.

Dearness Allowance will be increased by 4 percent

Central employees will get DA for both January and February along with salary. It is clear from the figures of AICPI that this time dearness allowance will increase by 4 percent. If sources are to be believed, from January 2023, DA will increase to 42 per cent. This will benefit 52 lakh central employees and 60 lakh pensioners.

Shiv Gopal Mishra, secretary of the National Council of JCM (JCM), says that the dearness allowance (DA) received under the 7th Pay Commission (7th Pay Commission DA Hike) is currently 38 percent, which will increase to 42 percent this time.

How much will the salary increase?

Under the 7th Pay Commission, the calculation of dearness allowance for employees and dearness relief allowance for pensioners is done on the basis of basic salary. For example, if someone’s basic salary is Rs 25,000, then he will get 42% DA on Rs 25,000. That is, 42 percent DA of 25,000 became DA Rs 10,500. On the basis of this, the DA of other central employees will also increase. You can also calculate it by gathering information about your basic salary.

Here is the calculation

Level 1 Basic pay: Rs 18000
42% DA ie Rs 7560 per month

Level 1 Basic pay: Rs 25000
42% DA i.e. Rs 10500 per month

There will be so much difference in salary.

Under the 7th Pay Commission, if your basic pay is Rs.18,000, then you get
dearness allowance of Rs.6,840 at the rate of 38 percent. But if the dearness allowance is 42 percent, it will increase to Rs 7560. Similarly, if you have a basic salary of Rs 25,000, then at present you will be getting dearness allowance of Rs 9,500. But with DA being 42 percent, it will increase to Rs 10,500.

Note: Here the calculation of increased DA has been done for example. Increase in DA also affects other allowances. In such a situation, there may be a difference in the final calculation.

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According to media reports, if the government approves this, then the employees can see a big increase in salary. The minimum basic salary of the employees will increase from Rs 18 thousand to Rs 26 thousand. In this way, the basic salary will increase by 8 thousand rupees in a month and 96 thousand rupees annually.

What is fitment factor

Fitment factor is a common value, which is used to decide the total salary of the employee. It is multiplied with the basic salary to calculate the total salary. Presently the common fitment factor is 2.57 per cent. This means that if the basic pay of an employee in 4200 grade pay is Rs 15,500, then his total pay will be 15,500×2.57 i.e. Rs 39,835.

There has been a demand for increasing the fitment factor for a long time.
It is noteworthy that the central and state employees have been demanding for a long time that their fitment factor be increased from 2.57 percent to 3.68 percent. If this happens then the minimum salary of central employees will increase from Rs 18 thousand to Rs 26 thousand.

DA and DR may increase

According to media reports, apart from increasing the fitment factor, dearness allowance (DA) of central employees is expected to increase in March 2023. This will be effective from January 1. The government will also increase the Dearness Relief (DR) of pensioners. Along with this, government employees can also get arrears of 18 months of DA.

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The recommendations of the 7th Pay Commission for central employees are applicable across the country and the employees are also getting its benefits. However, the employees complain that they are getting less salary than what was recommended for them. Employees unions say that they are preparing a memorandum in this regard, which will be submitted to the government soon.

According to the recommendations in this memorandum, there will be a demand to increase the salary or bring 8th Pay Commission. On the other hand, the government has categorically refused any idea on the subject of implementing the 8th pay sum in the House.

Minimum salary can be up to 26 thousand rupees

According to the affiliate website Zee Business, central employees’ organizations say that at present the minimum wage limit has been kept at Rs 18 thousand. In this, the fitment factor has been given a lot of prominence in the increment. At present, this factor is 2.57 times, although in the 7th Pay Commission it has been recommended to keep it up to 3.68 times. If this happens, then the minimum wage of the employees will increase from Rs 18 thousand to Rs 26 thousand.

Government can also launch a new system

According to sources, now after the 7th pay commission, the new pay commission will not come. Instead, the government is going to implement such a system, which will automatically increase the salary of government employees. This can be an ‘automatic pay revision system’, in which if the DA is more than 50 percent, there will be automatic revision in the salary.

If this happens, then 68 lakh central government employees and 52 lakh pensioners will get its direct benefit. However, the government has not yet taken any final decision on this. When the government will take a decision on this, it will be made official by issuing a notification.

Salary may increase more for lower income group

According to an official of the Finance Ministry related to the matter, in view of the inflation, the salary of the middle level employees should increase from the lower level. In such a situation, if the government comes up with a new salary formula in the year 2023, then the middle level employees may not get much benefit but the lower income group employees can get good benefits. His basic salary can increase by Rs 3 thousand to Rs 21 thousand.

Union will submit memorandum to the government

According to an official of the Central Employees Union, the union is going to prepare a note and hand it over to the government soon regarding the demands of increasing the salary. If the government refuses to accept their demands, the union will be forced to go on agitation. In this movement, along with the employees, the employees who got pension will also participate.

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Now you will be able to withdraw your pension only once. Let us tell you what are the new pension rules for central government employees- There is no permission to withdraw pension again , according to the information received from DoPPW, if any employee withdraws a part of his basic salary, then he is not allowed to withdraw pension again.

The department has issued a notification , information has been given by the Department of Pension and Pensioners Welfare by issuing a notification (DoPPW Notification) in this regard. According to the Civil Services (Commutation of Pension) Rules, 1981, the government is not allowed to withdraw pension more than once. With this, you can withdraw only 40 percent of the total pension at one go.

You can withdraw the outstanding amount after revising On lump sum withdrawal, the government has said that you can withdraw only 40 percent of the amount at one go. Apart from this, if the pension of any employee is revised, then in this situation you can withdraw your arrears.

According to the notification issued by DoPPW, those employees who have retired between January 1, 2016 and August 4, 2016, will get additional exemption on revision of pension under Rule 10 of CCS. Although the rule of 40 percent has been implemented here by the government.

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The government increases the dearness allowance twice every year. Central employees are getting 38 percent dearness allowance from July 2022. The increase in DA is based on the data of All India Consumer Price Index (AICPI). The government gives DA to the employees, whereas dearness relief (DR) is given to the pensioners.

Now the next amendment in dearness allowance will happen in January 2023. Inflation figures from July to September have been done and at the end of November, the inflation rate of October will also be known. Experts say that the government can increase the DA of the employees by 4 percent next year.

In this way, dearness allowance can increase to 42 percent. Last month, there was a decrease in retail and wholesale inflation. But, global inflation still remains very high. Its effect may still be there.

7 percent increase in 2 times In the year 2022, the government has increased the DA of government employees by 7 percent twice. In January, dearness allowance was increased from 31 per cent to 34 per cent. In this way, the government increased the DA by 3 percent. In July, the government increased DA by 4 percent and increased it from 34 percent to 38 percent. This step of the government benefitted 50 lakh central employees and 62 lakh pensioners.

Basic salary will be merged as soon as it is 50%

Dearness allowance is revised every six months for the employees. But, a condition has been added to it under the 7th Pay Commission. That is, when the dearness allowance of the employees crosses 50 per cent, it will be merged with the basic salary of the employee. When it is 50 percent, the money that the employees will be getting as dearness allowance will be added to the basic salary and only the money will be given as revised salary allowance.

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There is going to be a bumper increase in the basic salary of the employees in the coming year. Preparations have started for this from now. Apart from Dearness allowance, the government is also going to increase the basic salary.

DA will be added to the salary, apart from this, according to the notification issued by the government, when the dearness allowance of the employees crosses 50 percent, then the government will reduce the DA to zero. Along with this, this amount will be added to the basic salary, due to which there will be a bumper increase in the salary received by the employees.

DA will increase in January 2023 The central government will increase the DA bumper in January 2023, after which the DA of the employees will be 41 percent. Its figures have also started coming. The government increases DA twice in a year. Dearness allowance is increased in the months of January and July.

How will the salary increase?

At this time, if the calculation is done considering the basic salary of the employees as Rs 18,000, then if the DA increases to 50 percent. So in this situation Rs 9000 will be given as dearness allowance. At 50% DA, dearness allowance will be reduced to zero and this Rs 9000 will be added to your basic salary. That means your basic will increase from 18000 to 27,000 rupees.

This has happened before also , according to the experts, according to the rules, the DA received by the employees was added to 100% basic salary. In the year 2016, the government had changed the rules, only after which there was a bumper increase in the salary of the employees.

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The coming days or rather the coming year can be very good for the central employees. Many gifts are waiting for them. From the year 2023 itself, preparations will start regarding the increase in his salary. But, one gift that they will get without any planning is dearness allowance. It is available every year and will continue to be available in the future. But, the twist in the story will come when the year 2024 comes.

From here there will be a tremendous increase in the salary of the employees. There is a reason behind this. The government had issued a notification in the year 2016, stating that if the dearness allowance crossed 50 per cent, it would be made zero for the employees and 50 per cent DA money would be added to the basic salary. Let us understand how much the salary of the employees will increase due to this rule and how the calculation will be done.

Dearness Allowance (DA Hike) will increase by 4 percent in January

Central employees are getting 38 percent dearness allowance from July 2022. Now the next revision is to be in January 2023. Its figures have started coming. The dearness allowance figures from July to September have come. At the end of November, the number of October will also come. It is clear from this that there can be an increase of 4 percent in the dearness allowance next time also.

According to experts, inflation is increasing continuously all over the world. However, steps are being taken to control it in India. Last month, there was a decrease in retail and wholesale inflation. But, global inflation still remains very high. Its effect may still be there. In such a situation, there is only hope of increase in dearness allowance. The figures that are visible so far are pointing towards an increase of 4 percent. If there is an increase of 4 percent in January also, then the dearness allowance will reach 42 percent.

Merger will happen after 50 percent DA

Dearness allowance is revised every six months for the employees. But, under the 7th Pay Commission, a condition has been added to it. The condition is that when the dearness allowance of the employees crosses 50 per cent, it will be merged with the basic salary. And dearness allowance ie DA will be made zero.

When it is 50 percent, the money that the employees will be getting as dearness allowance will be added to the basic salary and the revised salary will be added to the allowance money. The minimum basic salary of a Level-3 employee is Rs 18000. Suppose DA increases to 50%, then the employee will get Rs 9000 as allowance. If we add this amount of 9000 rupees to the basic salary, then the basic salary of the employee will be 27000 rupees. And from here the dearness allowance will be zero.

When does dearness allowance become zero?

When the new pay scale is implemented, the DA received by the employees is added to the Basic Salary. According to experts, according to the rules, the DA received by the employees was added to 100% basic salary. In the year 2016, the government changed the rules. When the sixth pay scale came in the year 2006, at that time 187 percent DA was being received till December in the fifth pay scale.

The entire DA was merged with the basic pay. Hence the coefficient of 6th pay scale was 1.87. Then new pay band and new grade pay were also made. But, it took three years to deliver it. This was also done in the 7th Pay Commission. Now the recommendations of the 8th Pay Commission are to come in 2024, then it is expected to happen once again.

What happened in 5th and 6th pay commission?

At the time of the Sixth Pay Commission in the year 2006, the new pay scale was implemented from January 1, 2006, but its notification was issued on March 24, 2009. Due to this delay, DA Arrear of 39 to 42 months was paid to the government in 3 installments in 3 financial years 2008-09, 2009-10 and 2010-11. A new pay scale was also created. In the fifth pay scale of 8000-13500, 186 percent DA on 8000 was Rs 14500. Therefore, on adding both, the total salary was 22 thousand 880.

In the sixth pay scale, its equivalent pay scale was fixed at 15600 -39100 plus 5400 grade pay. In the sixth pay scale, this salary was 15600-5400 plus 21000 and on adding 16 percent DA 2226 on January 1, 2009, the total salary was fixed at Rs 23 thousand 226. The recommendations of the Fourth Pay Commission were implemented in 1986, the fifth in 1996, and the sixth in 2006. The recommendations of the Seventh Commission came into force in January 2016.

How much does the salary increase when DA is zero?

Automatic revision will happen in HRA

The next revision in House Rent Allowance will also happen when Dearness Allowance will cross 50 per cent. There is to be an increase of 3% in this. At present, the maximum rate is 27 per cent, which will be increased to 30 per cent. According to the government memorandum, HRA will be 30%, 20% and 10% when DA crosses 50%. The category of House Rent Allowance (HRA) is divided into X, Y and Z class categories. It has a list of cities. The central employees who fall in the X category have 27 per cent HRA, 18 per cent for Y class and 9 per cent for Z class HRA at present. There has to be a revision of 3-3% in this.

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7th Pay Commission news: Dearness allowance for central employees was announced on 28 September. This announcement was made in the first half of the year 2022 between January and July in the ratio of inflation. The new dearness allowance has come into effect from July 1, 2022. In this, the employees are now being paid DA at the rate of 38 percent. Due to the announcement to be made in September, the employees got DA for 3 months. The payment to some employees is done with the salary of September. At the same time, some will be paid in the salary of October. But, to know how much money increased in which bracket due to the increase in dearness allowance, one must see the DA Hike Table.

DA Hike Table- According to the basic salary, dearness allowance increased by how much
Here is the chart from Level-1 to Level-4. In this, the difference in dearness allowance of those with a basic salary of Rs 18000 to Rs 56900 has been shown in Level-1

Level-2 shows the payment of dearness allowance in the ratio of basic salary of Rs.19900 to Rs.63200.

In Level-3, the chart of dearness allowance of employees with basic salary ranging from Rs 21700 to 69100 has been given.

At the same time, in Level-4, the increase of dearness allowance has been shown for the employees with basic salary of Rs 25500 to Rs 81100.

In all the tables given above, you or any member of your family can estimate the dearness allowance according to the category in which you fit.

When will the next dearness allowance increase and by how much?

The next dearness allowance will be announced in the year 2023. It will be deemed to be applicable from 1 January 2023. However, the announcement will be made around Holi in March. Under the 7th Pay Commission, its increase in the ratio of inflation between July and December will be decided.

Industrial inflation data will show how much dearness allowance will increase. So far the numbers for July and August have come. As of July, the AICPI index has reached 130.2. At present, there has been an increase of 1 percent in the figures of two months. If this increases even further, then definitely once again the dearness allowance can increase by 3-4 percent.

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If media reports are to be believed, the government may soon increase the fitment factor. There has been a demand from the central employees to increase the fitting factor from 2.57 times to 3.68 times. The fitment factor is the revision of the basic salary . All categories of employees in the central government service get the benefit of fitment factor.

Now this is the basic salary

The current minimum basic salary for central employees as per the fitment factor is Rs 18,000 when the fitment factor is 2.57 times. Central employees, however, want it to be increased to 3.68 times. If this happens, the minimum wage for central employees will be Rs 26,000. If the fitment factor is increased to three times, the salary of the employees will see a big increase. The basic salary of a central employee is Rs 18,000. Total salary is 18,000 X 2.57 i.e. Rs 46260 after removing allowances. The salary being 26000 X 3.68 will be Rs 95680.

Salary will increase with allowances

The fitment factor has a significant impact on how much central employees are paid. According to the recommendations of the Seventh Pay Commission, the basic pay of the central employees is decided on the basis of their fitment factor and allowances. This is what can double or even triple the salaries of central employees. At present the fitment factor is 2.57 as per the recommendations of the 7th Pay Commission.

Government has increased DA

The Modi government has increased the Dearness Allowance ( DA ) for central employees from 34 percent to 38 percent with effect from July 1, 2022. This has definitely given some relief to the employees from inflation. However, now the employees are waiting for the increase in the fitment factor.

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7th Pay Commission news: Dearness allowance for central employees was announced on 28 September. This announcement was made in the first half of the year 2022 between January and July in the ratio of inflation. The new dearness allowance has come into effect from July 1, 2022. In this, the employees are now being paid DA at the rate of 38 percent. Due to the announcement to be made in September, the employees got DA for 3 months. The payment to some employees is done with the salary of September. At the same time, some will be paid in the salary of October. But, to know how much money increased in which bracket due to the increase in dearness allowance, one must see the DA Hike Table.

DA Hike Table- According to the basic salary, dearness allowance increased by how much
Here is the chart from Level-1 to Level-4. In this, the difference in dearness allowance of those with a basic salary of Rs 18000 to Rs 56900 has been shown in Level-1

Level-2 shows the payment of dearness allowance in the ratio of basic salary of Rs.19900 to Rs.63200.

In Level-3, the chart of dearness allowance of employees with basic salary ranging from Rs 21700 to 69100 has been given.

At the same time, in Level-4, the increase of dearness allowance has been shown for the employees with basic salary of Rs 25500 to Rs 81100.

In all the tables given above, you or any member of your family can estimate the dearness allowance according to the category in which you fit.

When will the next dearness allowance increase and by how much?

The next dearness allowance will be announced in the year 2023. It will be deemed to be applicable from 1 January 2023. However, the announcement will be made around Holi in March. Under the 7th Pay Commission, its increase in the ratio of inflation between July and December will be decided.

Industrial inflation data will show how much dearness allowance will increase. So far the numbers for July and August have come. As of July, the AICPI index has reached 130.2. At present, there has been an increase of 1 percent in the figures of two months. If this increases even further, then definitely once again the dearness allowance can increase by 3-4 percent.

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According to media reports, the fitment factor of central employees can be increased by 3.68 percent in the new year. According to sources, the fitment factor of central and state employees can be increased by 2023. This will increase the minimum basic salary by 8000.

In fact, for a long time, central employees have been demanding an increase in the fitment factor to increase the basic salary, since the fitment factor is a big measure to determine the minimum salary of central employees. Due to this factor, the salary of central employees increases by more than two and a half times. The pay matrix made in the 7th Pay Commission is based on the fitment factor, in such a situation, the fitment factor is considered to be an important role in the salary received by the employees.

According to media reports, the minimum salary of employees can be increased once again by the Modi government under the 7th Pay Commission. At present, the fitment factor of the employees under the 7th Pay Commission is 2.57 times and the basic salary is 18000. . The fitment factor can be increased to 3.68 per cent, after which the minimum basic salary will be 26000. It is reported that after the budget to be presented in February 2023, the Modi government may consider the fitment factor.

According to media reports, the central employees have written a letter to the Cabinet Secretary demanding to increase the fitment factor and several rounds of discussion have also taken place. If sources are to be believed, it may be agreed to increase the fitment factor 3 times in the new year and the minimum salary may be 21,000 or if it is increased from 2.57 to 3.68, the minimum basic salary will increase from 18 thousand to 26 thousand rupees. However, no official confirmation has been made yet.

Bumper jump in salary

• Central employees get Rs 18000 as minimum salary while maximum salary is Rs 56,900.
• For example, if the basic salary of a central employee is Rs 18,000, then his salary excluding allowances will be Rs 18,000 X 2.57 = profit of Rs 46,260 .
• On being 3.68, the salary will be Rs 95,680 ( 26000 X 3.68 = 95,680 ) i.e. Rs 49,420 will be benefited in the salary.
• If the fitment factor is 3 times, the salary will be 21000 X 3 = Rs 63,000. The government can take a decision after considering this after the next year’s budget.
• Last time in 2017 the entry level basic pay was increased from Rs 7000 to Rs 18000 per month.
• Its 52 lakh employees will get benefits from 50000 to 96000 in basic salary.

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7th Pay Commission Fitment Factor update:  There is great news once again for the central employees. The government can take a decision on the fitment factor next month. This will increase the minimum basic salary of the employees. A draft will be prepared for this, which will be shared with the government. Union has given a big update. If this is agreed with the government, then the basic salary of more than 52 lakh central employees can be increased under the fitment factor.

Fitment Factor update

It is worth noting that the government has recently increased the dearness allowance and dearness relief to the employees. After this, the employees will get the benefit of increased dearness allowance and dearness relief from July. Now if there is a change in this, the minimum basic salary of the employees will increase. As soon as there is a change in the fitment factor, its effect will be visible on the entire salary of the employees. It is expected that a meeting can be held by next month regarding the fitment factor. Government employees have been demanding for a long time to increase the fitment factor.

important role in salary 

At present, the fitment factor is being given to the central employees at the rate of 2.57 percent, which can be increased to 3.68 times. Let us tell you that the fitment factor plays an important role in deciding the salary of central employees. Change in fitment factor means it will affect your salary as well. Actually, on the basis of this, the basic salary of the employees is increased.

Basic salary was increased in 2017

It is worth noting that on increasing the fitment factor from 2.57 to 3.68, the minimum basic salary will increase from 18 thousand to 26 thousand rupees. Earlier in 2017, the basic salary of entry level employees was increased by the government. But after that no change was made in it. At present, central employees get Rs 18 thousand as minimum salary, while maximum salary is Rs 56,900.

View Calculations

If the government makes 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 demand of the employees is accepted, then the salary will be 26000X3.68 = Rs 95,680. Salary will be 21000X3 = Rs 63,000 on 3 times fitment factor. 

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There is also a retirement benefit scheme for employees in the private sector. This scheme is Employed Provident Fund (EPF). This scheme is for the employees working in the organized sector. Employees’ Provident Fund Organization (EPFO) manages this scheme.

In the EPF account, there is a contribution from both the employee and the employer (company). This contribution is 12-12 per cent of the basic salary plus dearness allowance. The interest rates of EPF are fixed every year by the government. For the financial year 2022-23, the interest on EPF is getting 8.1 percent annually. EPF is such an account, in which gradually large corpus is formed till retirement.

Retirement fund on 15 thousand basic salary-

Suppose your basic salary and dearness allowance together is Rs 15,000. If you are 40 years old, then till retirement i.e. by the age of 58, you can have a retirement fund of Rs 27.66 lakh ready. The maximum contribution can be made in the EPF scheme only up to 58 years.

Understand EPF calculation-

Basic Salary + DA = Rs 15,000
Current Age = 40 Years
Retirement Age = 58 Years
Employee Monthly Contribution = 12%
Employer Monthly Contribution = 3.67%

Interest rate on EPF = 8.1% p.a.
Salary growth = 10%
Maturity fund at the age of 58 years = ₹ 27.66 lakh

(Employee contribution is Rs 11.05 lakh and employer contribution is Rs 3.38 lakh. Some contribution is Rs 14.43 lakh.)

( Note: annual interest rate is 8.10 per cent and salary growth is 10 per cent for the whole year of contribution.)

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New labor laws are yet to be implemented. But, for the last 2 years, their discussion is in full swing. A total of four labor codes will be implemented in the country. Most of the states have given their consent to the draft rules. Labor Minister Bhupendra Yadav has expressed hope that the new labor laws will be implemented soon.

Preparations have been completed by the Labor Ministry. The salaried workers will benefit the most when the New Wage Code is implemented. They will have more corpus deposited in the Provident Fund. According to experts, even though there will be some reduction in the monthly in hand salary, the retirement fund will accumulate more through EPF. Only your EPF account can make you a millionaire.

New Wage Code Calculation

On the implementation of the New Wage Code, let’s assume that the basic salary of an employee is 25 thousand rupees per month. In such a situation, the total amount of EPF with him on retirement will be Rs 1,18,58,402. An annual increment of 5 percent has also been kept in this calculation, which will increase the EPF fund further.

If we look at the current conditions, the monthly salary of an employee is Rs 50,000 and the basic salary is Rs 15,000, then the amount of PF on retirement will be Rs 64,62,867.

What is the cost to company?

CTC is the expenditure incurred by a company on its employee. This is the complete salary package of the employee. CTC includes Monthly Basic Pay, Allowances, Reimbursement. At the same time, products like gratuity, annual variable pay, annual bonus are included on an annual basis. The amount of CTC is never equal to the employee’s take home salary. CTC has many components so it is different. CTC = Gross Salary + PF + Gratuity

Basic salary

Basic salary is the base income of an employee. It is fixed based on the level of all the employees. It varies according to the rank of the employee and the industry in which he is working.

Gross salary

PF Calculator New Wage Code: The salary which is made by adding basic pay and allowances without deducting tax is called gross salary. This includes bonus, overtime pay, holiday pay and other itemized allowances.
Gross Salary = Basic Salary + HRA + Other Allowances

Net salary

Net salary is also called take home salary. The salary that is made after deducting tax is called net income.
Net Salary = Basic Salary + HRA + Allowances – Income Tax – EPF – Professional Tax

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Being an EPFO ​​subscriber means that you will also have an EPF account. Your employer ie the company would have contributed 12 percent of the salary to the Provident Fund on the basis of the basic salary.

Explain that EPFO ​​manages the accounts of crores of account holders. In these accounts, the basic salary and dearness allowance (DA) of both the employee and the company are deposited in 24 percent (12+12) shares. The government fixes interest every year on the amount deposited in the EPF account. At present, the interest available on this is 8.1 percent.

Generally people do not take EPF money very seriously. But the money that is deducted if you keep it till retirement. If you do not withdraw it, a huge fund can be created. This creates a huge corpus for retirement. Also, the magic of compounding interest is such that you can become a millionaire with an investment of 25 years. According to the rules, if there is retirement at the age of 58, then how much money will be in the EPF account? It is from your salary slip that you can understand how much money you will get?

Retirement fund on basic salary of Rs 10,000

Suppose your basic salary and dearness allowance together is Rs 10,000. If you are 30 years old, then by retirement ie by the age of 58, you will have a retirement fund of Rs 67.32 lakhs ready. The maximum contribution that can be made in the EPF scheme is only up to 58 years.

calculation

• Basic Salary + DA = Rs 10,000
• Present age = 30 years
• Retirement age = 58 years
• Employee monthly contribution = 12%
• Employer monthly contribution = 3.67%
• Interest rate on EPF = 8.1% per annum
• Annual salary growth = 10%
• Maturity Fund at the age of 58 years = Rs 67.32 lakh.

EPF contribution can also be increased

If you feel that your money is not enough for retirement planning, then you can also increase your contribution to the EPF fund. However, for this one will have to talk to the HR of the company. If you want, you can also double your contribution. This will give you the advantage that your fund will also double.

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But if you do not want to invest separately, then EPF can come in handy. Employees’ Provident Fund Organization gives an opportunity to its account holders, through which if they invest some part of their salary in EPF, then you can get a substantial amount at the time of retirement.

According to the experts, if your basic salary is 20 thousand and from the age of 25, 24% (12% Employee + 12% Employer) EPF is deducted, then accordingly an investment of Rs 4800 will be made every month. If you keep investing continuously for 25 years, then you can get a corpus of 2.79 crores on retirement. Let us understand about it in simple words…

This is how retirement fund will be prepared

• You are given an interest rate of 8.5% while investing in EPF. If we assume salary hike of 7% then investment started at the age of 25 will make you a millionaire till old age. Let us understand in the steps how much benefit will be given at what age to start…
• If the age to start investing is 25 years and the basic salary is 20 thousand, then you can get Rs 2.79 crore at the time of retirement.
• If the salary is Rs 28,051 at the age of 30, then 2.30 will be available at the time of retirement.
• At the age of 35, the salary is Rs 39,343, so at the time of retirement you will get Rs 1.85 crore.
• If you start investing from the age of 40, then you will get Rs 1.42 on the basic salary of Rs 55,181.
• At the age of 45, the basic salary is Rs 77,394, so you will get Rs 1.03 crore.
• At the age of 50, the basic salary is Rs 1,08,549, so you will get 66.44 lakhs at the time of retirement.

keep these things in mind

• Do not withdraw money from EPF unless there is some very important work or emergency, as withdrawing money will keep reducing your old age savings. For example, if you withdraw Rs 1 lakh from the PF account at the age of 30, then at the age of 60, Rs 11.55 lakh will be reduced from the retirement fund.
• Apart from this, get your old account transferred only after changing jobs. The older the PF account, the more benefits you will get.
• In case of non-transfer, interest will accrue on the new account, but the interest on the old account will stop after 3 years. You can easily transfer EPF account through UAN.

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This will completely change the take home salary, PF and gratuity. In this code, the salary coming in the hands of the private employer can be reduced. However, the government is making better arrangements regarding old age. According to experts, the monthly in-hand salary will undoubtedly decrease, but due to the increase in basic, more money will be deposited in the retirement fund. This will create a huge fund for retirement. Apart from this, there will also be benefit in Gratuity.

Understand the calculation here

If the age of an employee is 30 years and his monthly salary is 50 thousand rupees and basic salary will be 15 thousand rupees. So if the average appraisal is taken in 5% salary every year till the age of retirement i.e. 60, then according to the current interest rate of 8.1%, the total amount in the PF account from regular investment will be Rs 65,36,758.

Now the basic salary of an employee will be 25 thousand rupees per month. Then the amount of PF on retirement will be Rs 1,08,94,586. Here the annual increment of 5 percent has been taken, due to which the PF fund will increase further.

What is Cost to Company 

New Wage code benefits: CTC is the expenditure incurred by a company on its employee. This is the complete salary package of the employee. CTC includes Monthly Basic Pay, Allowances, Reimbursement. At the same time, products like gratuity, annual variable pay, annual bonus are included on an annual basis. The amount of CTC is never equal to the employee’s take home salary. CTC has many components so it is different. CTC = Gross Salary + PF + Gratuity

What is the basic salary?

Basic salary is the base income of an employee. It is fixed based on the level of all the employees. It varies according to the rank of the employee and the industry in which he is working.

What is Gross Salary?

The salary which is made by adding basic pay and allowances without deducting tax is called gross salary. This includes bonus, overtime pay, holiday pay and other itemized allowances.
Gross Salary = Basic Salary + HRA + Other Allowances

What is net salary?

Net salary is also called take home salary. The salary that is made after deducting tax is called net income.
Net Salary = Basic Salary + HRA + Allowances – Income Tax – EPF – Professional Tax

What allowances will be included?

The company gives allowances to the employee in lieu of the job. This may vary from company to company.

> HRA : House Rent Allowance is given to the employee in lieu of the house on rent.

> LTA : LTA is the cost of domestic travel to the employee. This does not include food, hotel fare.

> Conveyance Allowance: Conveyance allowance is given to the employee in lieu of the expenses incurred in going home from office.

> Dearness Allowance: DA is a living allowance. It is given in lieu of inflation. Its eligible are government employees and pensioners.

> Other allowances include special allowance, medical allowance and incentive or incentive.

How much will be the reimbursement

According to experts, in many companies, there is a provision to reimburse the employee for treatment, phone expenses, newspaper bills. This amount is available separately from the salary. But only after paying the bill. Under the Income Tax Act, every reimbursement is tax exempt up to a limit.

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After the implementation of the new labor law, your in hand salary will not decrease but will increase. Now you must have been hearing that after the implementation of the new labor law, your in-hand salary will be reduced in the salary structure. Because the basic salary will be 50%. This will cut more money into the retirement fund. The huge amount of allowances will be reduced.

Basic salary will be 50 percent-

Let us tell you that the government has prepared 4 New Labor Codes by adding 29 labor laws. According to the provisions of the new law, the basic salary will be 50% of the total salary (CTC) in the salary that companies will pay to their employees. This means that the basic salary which used to be 30-35 percent earlier, will be increased by 15 percent directly and the remaining 50 percent will be part of reimbursement-allowance.

What is in the current salary structure?

Suppose your monthly salary is an annual package of Rs 1.5 lakh i.e. Rs 18 lakh. In the current salary structure, the basic salary is 32% of the CTC. In this sense, in the monthly CTC of 1.50 lakh, the basic salary will be Rs 48,000. Then 50 percent i.e. Rs 24,000 HRA then 10% of basic (Rs 48,000) in NPS i.e. Rs 4,800 will go.

If 12% of the basic salary goes to the Provident Fund (PF), then Rs 5,760 will go to the EPF every month. In this way your monthly CTC of Rs 1.50 lakh has become Rs 82,560. This means that the remaining Rs 67,440 is being given through other items. These include components like special allowance, fuel and transport, phones, newspapers and books, monthly share in annual bonus, gratuity.

How much tax is made, how much is the salary in hand and how much is retirement savings?

Out of your total CTC, Rs 1.10 lakh will be taxed. That means 6.14 percent tax of CTC. Take home salary – Rs 1.14 lakh, 76.1 percent of CTC. Retirement savings – Rs 1.96 lakh, totaling 10.9 percent of CTC.

Less tax exemption will be available in HRA-

According to the new rule, suppose the annual basic salary is Rs 9 lakh, then HRA will be Rs 4,50,000. But, you will get tax exemption only on Rs 2,42,400. Meaning tax will have to be paid on Rs 2,07,600. Earlier, you had to pay tax on only Rs 45,600 received under the head of HRA.

There is going to be a huge increase in tax on HRA in the new salary structure. If you compare the tax on annual CTC, now you have to pay tax of 1.10 lakh (6.1% of total CTC), which will be Rs 1.19 lakh (6.6% of total CTC) in the new structure.

Let us tell you that your take home salary will decrease in the new structure, but if you want some option to be taken out, then you have a way. You can leave the NPS, because whether to put or not to put money in it depends on your wish. This is not the case with EPF, in EPF you have to pay 12% of your basic salary.

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However, a formal announcement is yet to be made. But, there is speculation that it can be implemented in the coming months. The matter is that whenever it is implemented, the biggest change will be seen in the salary structure. Till now you must have heard that your in hand salary will be reduced in the salary structure with the coming of new labor law. Because, the basic salary will be 50%.

This will cut more money into the retirement fund. The huge amount of allowances will be reduced. Now here is the twist. Even after the new salary structure comes, your in hand salary will not decrease but will increase. Let’s understand how…

Basic salary will be 50%

First understand that the government has prepared 4 new labor codes by adding 29 labor laws. According to the provisions of the new law, the basic salary will be 50% of the total salary (CTC) in the salary that companies will pay to their employees. This means that the basic salary which used to be 30-35 percent earlier, will be increased by 15 percent directly and the reimbursement-allowance part will remain 50 percent.

What is in the current salary structure?

Suppose your monthly salary is an annual package of Rs 1.5 lakh i.e. Rs 18 lakh. In the current salary structure, the basic salary is 32% of the CTC. In this sense, in the monthly CTC of 1.50 lakh, the basic salary will be Rs 48,000. Then 50 percent i.e. Rs 24,000 HRA then 10% of basic (Rs 48,000) in NPS i.e. Rs 4,800 will go. 

If 12% of the basic salary goes to the Provident Fund (PF), then Rs 5,760 will go to the EPF every month. In this way your monthly CTC of Rs 1.50 lakh has become Rs 82,560. This means that the remaining Rs 67,440 is being given through other items. These include components like special allowance, fuel and transport, phones, newspapers and books, monthly share in annual bonus, gratuity.

Whose share in the current salary structure

How much tax is made, how much is the salary in hand and how much is retirement savings?

• Out of your total CTC, Rs 1.10 lakh will be taxed. That means 6.14 percent tax of CTC.
• Take home salary – Rs 1.14 lakh, 76.1 percent of CTC.
• Retirement savings – Rs 1.96 lakh, totaling 10.9 percent of CTC.

With the implementation of the New Wage Code, there will be a change in the salary structure of the employees. Think of it like this-

How much tax, how much salary in hand and how much will be retirement savings?

• Out of your total CTC, Rs 1.19 lakh will be taxed. That means 6.6 percent tax of CTC.
• Take home salary – Rs 1.06 lakh, 70.4 percent of CTC.
• Retirement savings- Rs 3.06 lakh, 17 per cent of the total CTC.
• In the new structure, your annual retirement savings will be Rs 3.06 (17% of CTC) as against Rs 1.96 lakh (10.9% of CTC) earlier. Meaning, your annual retirement savings will increase by Rs 1.10 lakh under the new structure.

HRA will get less tax exemption

According to the new rule, suppose the annual basic salary is Rs 9 lakh, then the HRA will be Rs 4,50,000. But, you will get tax exemption only on the exemption of Rs 2,42,400. Meaning tax will have to be paid on Rs 2,07,600. Earlier, you had to pay tax on only Rs 45,600 received under the head of HRA. There is going to be a huge increase in tax on HRA in the new salary structure. If you compare the tax on annual CTC, now you have to pay tax of 1.10 lakh (6.1% of total CTC), which will be Rs 1.19 lakh (6.6% of total CTC) in the new structure.

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However, its official announcement has not been made yet. The formal announcement of the increased DA by the government can be made on 28 September i.e. on the third day of Navratri. This increased DA will be applicable from 1st July 2022. Central employees will also get increased DA along with the salary of September.

After increasing the DA of the Central Government by 4 percent, the total dearness allowance to the central employees has gone up to 38 percent. Along with the salary of September, the employees will get the increased DA as well as they will also get the money for the arrears of July and August. This decision of the government will benefit more than one crore central employees and pensioners.

increase in salary According to the 7th Pay Commission, the minimum basic salary at the level of cabinet secretary is Rs 56,900, while for others the minimum basic salary is Rs 18,000. According to 38 percent DA, there will be a total increase of Rs 27,312 in the annual dearness allowance on the basic salary of Rs 56,900. So on the other hand, on the basic salary of Rs 18,000, the total increase in annual DA will increase by Rs 6,840.

Criteria for increasing dearness allowance Recently, the All India Consumer Price Index-Industrial Workers (AICPI-IW) has released the data for the first half of the current financial year. The index gained 0.2 points. In view of this increase in the index, the government has increased the DA by 4 percent. The government decides the rate of DA to the employees on the basis of this index.

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According to sources, now that file is yet to be approved by the cabinet. Even before this, whenever that file has reached the table, DA/DR has been announced. This time the DA/DR may increase by four to five percent. At present, dearness allowance is being received at the rate of 34 per cent. If there is an increase of 4 per cent, the DA/DR rate will reach 38 per cent. The opposition is also continuously attacking the central government regarding inflation.

There is a fixed increase of 4-5 per cent in dearness allowance… The central government revises the rates of DA / DR twice in a year i.e. in January and July based on the data of retail inflation. If we talk about the current situation in the country, then inflation is increasing. Inflation level has reached above the estimates of ‘Reserve Bank of India’. Retail inflation has been above 7 per cent in June.

There was an increase of three per cent in ‘DA/DR’ since January this year. As a result, the DA/DR rate reached 34 per cent. Now from July 1, a hike of 4-5 per cent in dearness allowance is believed to be fixed. Data from the All India Consumer Price Index for Industrial Workers also predicts an increase of up to five per cent in DA/DR. After increasing the DA/DR by the central government, all the state governments also provide this benefit to their respective employees.

47 lakh workers and 63 lakh pensioners will be benefited The benefit of this increase will reach about 47 lakh central workers and 63 lakh pensioners. If the basic salary of an employee is Rs 18,000 and there is an increase of four per cent in DA, then according to the dearness allowance of 38 per cent, his salary will increase by about Rs 720. If the basic salary of the employee is 25 thousand rupees, then he will get a benefit of 1000 rupees per month. If the worker whose basic salary is 35 thousand rupees, then he will get 1400 rupees more per month.

The basic salary of Rs 45 thousand will increase by about Rs 1800. Such workers, who get a basic salary of Rs 52 thousand, will get a benefit of more than Rs 2000 every month on the increase in DA. An employee with a basic salary of Rs 70 thousand will get an increase of about Rs 2800, Rs 3420 on a basic salary of Rs 85,500 and an increase of more than Rs 4000 every month in the account of employees with a basic salary of Rs 1 lakh.

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This contribution is 12-12 per cent of the basic salary plus dearness allowance. The interest rates of EPF are fixed every year by the government. At present, 8.1 percent annual interest (FY23) is there. EPF is such an account, in which gradually large corpus is formed till retirement.

Retirement Fund at ₹15,000 Basic Salary

Let’s say your basic salary and dearness allowance together is Rs 15,000. If you are 21 years old, then you can have a retirement fund (EPF Corpus) of Rs 1.26 crore by the time you retire through EPF i.e. by the age of 58. In this, the condition will be that the interest on EPF remains 8.1 percent till retirement and annual salary growth of 5 percent remains. Changes in this may result in change in retirement corpus. The maximum contribution that can be made in the EPF scheme is up to 58 years.

Check EPF Calculation

Basic Salary+DA= ₹15,000
Current Age= 21 Years
Retirement Age= 58 Years
Employee Monthly Contribution= 12%
Employer Monthly Contribution= 3.67 percent
Interest Rate on EPF= 8.10%
Annual Salary Growth= 5%
Maturity Fund at 58 Years = 1.26 crore (Employee contribution is Rs 23.26 lakh and Employer contribution is Rs 7.11 lakh. That is, some contribution is Rs 30.38 lakh.)

(Note: Annual interest rate is 8.1 per cent and salary growth is 5 per cent for the whole year of contribution.)

Employer’s entire 12% does not go towards EPF

12% of the basic salary and Dearness Allowance (Dearness Allowance) of the employee is deposited in the EPF account. But, the employer’s 12 percent amount is deposited in two parts. Out of 12 per cent contribution of the employer, 8.33 per cent is deposited in the Employee Pension Account and the remaining 3.67 per cent goes into the EPF account.

Understand contribution from ₹15,000 salary

Employee Basic Salary + Dearness Allowance = Employee Contribution in ₹15,000
EPF = 12% of ₹15,000 = Employer Contribution in ₹1800
EPF = 3.67% of ₹15,000 = ₹550.5
Employer’s Contribution to Pension Fund (EPS) 8. 33 ₹ 15,000 Contribution %= ₹1249.5

In this way, the total monthly contribution in the EPF account of an employee with a basic salary of Rs 15,000 in the first year will be Rs 2350 (Rs 1800 + 550). After this, the basic and dearness allowance will increase in the same proportion with a 5% increase in the salary on an annual basis. With which the EPF contribution will increase. It is mandatory for the employees whose basic salary is less than Rs 15,000, it is mandatory to join this scheme.

(Note: This figure for Retirement Fund through EPF Contribution has been taken on fixed interest rate, salary growth and employee and company contribution. This is only an estimate. The corpus may vary due to change in figures.)

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It is believed that under the Employees’ Pension Scheme-95, the pension can increase by 333%. In the Employees’ Pension Scheme, the maximum pension is fixed at Rs.15 thousand. After this it is sealed. Meaning, even if the basic salary is more than Rs 15,000 per month, your pension will be calculated on the maximum salary of Rs 15,000.

EPS Pension can increase manifold!

The ceiling of pension matter is pending with the Supreme Court bench. It has been heard at many levels. The union is continuously demanding that the capping on pension should be abolished. If the decision is in favor of the employees, then the calculation of pension (Employee’s Pension Scheme) can also be done on the last salary i.e. high salary bracket. 

With this decision, it is possible to increase the pension of employees up to 300%. The condition for getting pension under EPS is that it is necessary to contribute to the Employees’ Provident Fund (EPF) for 10 years. At the same time, the weightage of 2 years is available on completion of 20 years of service. Removing the ceiling will make a big difference.

How will your pension increase in EPS-95?

According to the existing rules, if an employee is doing a job from June 1, 2015 and if he wants to take pension after completing 14 years of service, then his pension would be calculated at Rs 15,000 only. Whether the employee is in basic salary of 20 thousand rupees or 30 thousand rupees. According to the old formula, the employee will get a pension of about Rs 3000 from June 2, 2030, on completion of 14 years. The formula for calculation of pension is- (Service Historyx15,000/70). But, if the ceiling of pension is abolished, then the pension of the same employee will increase.

Example No.1

Suppose the salary (Basic Salary + DA) of an employee is at 20 thousand rupees. Calculating with the formula of pension, his pension will become Rs.4000 (20,000X14)/70 = Rs.4000. Similarly, the higher the salary, the more he will get the benefit of pension. There can be a 300% jump in the pension of such people.

Example No.-2

Suppose the job of an employee is 33 years. His last basic salary is 50 thousand rupees. Under the current system, the calculation of pension would have been done only on the maximum salary of 15 thousand rupees. In this way (Formula: 33 Years+2= 35/70×15,000) the pension would have been Rs 7,500 only. This is the maximum pension in the current system. But, after removing the pension ceiling, adding pension according to the last salary, they will get a pension of 25000 thousand rupees. Means (33 years+2= 35/70×50,000= Rs 25000). 

333 percent salary will increase

Let us tell you that according to the rules of EPFO, if an employee contributes to the EPF continuously for 20 years or more, then two more years are added to his service. In this way, 33 years of service was completed, but pension was calculated for 35 years. In such a situation, the salary of that employee can increase by 333 percent.

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Bumper salary of employees will increase

New dearness allowance is going to be implemented for central employees. Actually, according to the AICPI data, there may be an increase of 4 to 5% in dearness allowance this month i.e. 38 to 39 percent DA. So far, the numbers of the AICPI index till July have come. Meanwhile, if the government agrees on the fitment factor, then the salary and pension of central employees and pensioners will increase. Meanwhile, 8th Pay Commission is also being demanded by the union, but Pankaj Choudhary has categorically denied it.

Increase in minimum basic salary

Let us tell you that in the 7th Pay Commission, the salary of central employees is decided by the fitment factor. If the fitment factor increases, then the minimum salary of central employees will increase. Let us tell you that due to this formula, the salary of central employees increased by more than two and a half times. At present, the fitment factor of the employees is at the rate of 2.57 times. On this basis, the minimum basic salary is Rs 18000 and the maximum basic salary is Rs 56900.

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A formal announcement of this decision will be made in the meeting to be held at the end of September. Let us tell you that due to increase in DA, there is going to be a bumper increase in the salary of central employees. 

how much will the salary increase

According to the pay matrix of 7th pay commission, there will be a bumper increase in the salary of officer grade. Here we have tried to calculate the increase in basic salary of a pensioner by Rs 31,550. You can also understand from this how much the salary will increase.

Basic Salary – Rs 31550
Dearness Allowance (estimated) – 38% – Rs 11,989 per month
Existing Dearness Allowance – 34% – Rs 10,727  On increase of
4% Dearness Allowance – Rs 1262 to increase every month
After Rs 15,144 

Calculation at 38%

After increasing the dearness allowance at the rate of 4 percent, the total DA will become 38 percent. If we calculate it in the maximum salary range, then on the basic salary of Rs 56,900, Rs 21,622 will be available as DA every month. The total annual dearness allowance will be Rs 2,59,464.

Employees will get DA arrears 

In the 7th Pay Commission, in the current structure, all central government employees and pensioners are being paid DA and DR at the rate of 34 percent. But, after September, payment will be made at the rate of 38 per cent. Three months dearness allowance will be paid along with the September salary. In this, DA arrears of July and August will also come.

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What will be the increase in DA?
The government uses the data of the AICPI-IW (All India Consumer Price Index- Industrial Worker) index for how much the Dearness Allowance of the employees will increase. The figures for the first half of AICPI-IW have been released. The index has reached 129.2 in June. Due to the rise in the index, an increase of 4 percent in DA is certain. More than one crore central employees and pensioners will get the benefit of this increase.

When will the money of 38% DA come?
After increasing the dearness allowance by 4 percent, the dearness allowance of central employees has increased to 38%. The increased dearness allowance will be paid in the salary of September 2022. The new dearness allowance will be applicable from July 1, 2022. In such a situation, the arrears of July and August will also be included in this. If the government pays it at the time of Navratri, big money will come in the pockets of the employees.

How much will it become
, if there is an increase of 4 percent in DA, it will increase to 38 percent. At present, 34 percent dearness allowance is being given to the central employees by the government. With the DA being 38 percent, there will be a significant jump in the salary. Let us see how much will the minimum and maximum basic salary increase with 4 percent DA?

Calculation on maximum basic salary
1. Basic salary of employee Rs 56,900 
2. New dearness allowance (38%) Rs 21,622/month
3. Dearness allowance so far (34%) Rs 19,346/month
4. How much dearness allowance increased by 21,622-19,346 = Rs 2260/month
5. Increase in annual salary 2260 X12 = Rs 27,120

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