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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The stir has started regarding this. An update has come regarding the fitment factor of government employees that the government will review it, may decide to extend it till next year. With this, there will be a tremendous increase in the basic salary of the employees.

There may be a big announcement on fitment next year-

According to sources, there will be no hike in the fitment factor in the year 2023. But, in the year 2024 it can be reviewed and increased. However, so far no clear information has been given by the government regarding this. The Expenditure Department will brainstorm on this now.

Also the recommendations can be sent to the Finance Ministry. At the same time, a new Pay Commission may also be formed next year. In such a situation, a decision on the fitment factor is also possible at that time. If sources are to be believed, it is not possible to take any decision on the fitment factor till the next Pay Commission. It is also difficult to say when the next pay commission will come. But, the government is trying to revise the salary of central employees next year.

Why is there a demand to increase the Fitment Factor?

Fitment Factor is considered very important for central employees. On the basis of this, it is decided that how much the minimum salary (Basic Salary) of the employees will increase. According to the recommendations of the 7th Pay Commission, in addition to allowances in the salary of central employees, the basic salary increases only by the fitment factor.

Last time due to increase in the fitment factor, there was an increase of more than two and a half times in the salary of central employees. But, there was a demand of the employees that the fitment factor should be further increased. This can lead to a good increase in their basic salary. The government is currently in no mood on this.

What is Fitment Factor?

According to the recommendations of the 7th Pay Commission, at present the fitment factor is 2.57. The basic salary of central employees is calculated by multiplying the fitment factor of 7th Pay Commission latest update by 2.57. After the implementation of the 7th Pay Commission, the basic pay was made by adding Grade Pay to the Pay Band of the 6th Pay Commission. In this, the salary of the current entry level was calculated by multiplying the fitment factor by 2.57, from which the salary was prepared according to the pay band of the employees.

For example-

6th CPC Pay Band: PB 1
Grade Pay: Rs 1800
Current Entry Pay: Rs 7000
Entry Pay after applying fitment factor under 7th Pay Commission: 7000 x 2.57 = Rs 18,000.

What if the fitment factor is 3 times?

6th CPC Pay Band: PB 1
Grade Pay: Rs 1800
Current Entry Pay: Rs 7000
Entry Pay after applying fitment factor under 7th Pay Commission: Rs 7000 x 3 = Rs 21,000.

How much will there be a jump in salary?

Central employees are getting 2.57 fitment factor in the current system. Based on this, the minimum salary (Fitment factor Basic Salary) is Rs.18000. If it is increased to 3 then the basic salary will be Rs.21000. On the other hand, if it can be increased to 3.68, then the salary will be Rs 25,760. The demand of the employees is that their fitment factor should be increased to 3.68. The minimum salary should be kept at Rs 26000.

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