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

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

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

Fitment factor may increase

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

What is Fitment Factor?

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

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

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

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

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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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