For employees and pensioners who have been waiting for a long time for the formation of the 8th Pay Commission, the government may announce the DA increase before Diwali. This move will provide a big relief to more than 1.2 crore central government employees and pensioners. It is estimated that the employees will get the benefit of increased earnings before Dussehra and Diwali.

Three months’ arrears will also be given

The DA of central government employees is likely to increase by 3 percent from 55 percent to 58 percent. Since this increase will be considered effective from July 2025, central government employees and pensioners will also get three months’ arrears of July, August and September by adding them to the salary and pension of October. According to the information received, the 3 percent DA increase can be formally announced in the first week of October. The government will announce it at such a time that the employees and pensioners can get some relief during the festive season.

To provide relief to its employees from rising inflation, the government revises the Dearness Allowance (DA) twice a year, which comes into effect from January 1 and July 1. While its hike is announced twice a year – in February-March and September-October. Considering inflation this year, there is a possibility of a 3-4 percent hike in DA for central government employees in July 2025. This is expected to provide relief to the employees from the impact of inflation.

How is it calculated?

The DA increase for industrial workers is calculated on the basis of the Consumer Price Index – CPI-IW, which is released every month by the Labour Bureau. The government calculates the increase in dearness allowance by taking the average of the CPI-IW data of the last 12 months and using a special formula under the Seventh Pay Commission.

Think of it this way.

The CPI-IW average from July 2024 to July 2025 was 146.3. On this basis, the current DA will increase by 3 percent from 55 percent to 58 percent.

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According to ET, the bonus benefits will be given to medium and junior level employees in the delivery and sales units. These numbers are a large part of the more than 3.15 lakh employees of the Bengaluru-headquartered software company.

In an email sent to employees, the company said that it will credit the bonus with the salary for the month of November. However, the percentage of payment for each employee has been different depending on their performance and contribution for the quarter.

Infosys expressed gratitude to the employees for their good work

The email reads, “In the second quarter, we have performed better with higher profits, which has further strengthened our market value. This success is a result of your unwavering dedication and our strategic focus on margin performance. Your commitment is helping us build our capabilities and provide convenience to our customers. Thank you for your cooperation.”

Infosys has achieved growth in business for the second consecutive quarter in the quarter ended September. In the September quarter, its consolidated earnings have increased by 4.7 percent year-on-year to Rs 6,506 crore. At the same time, its total earnings have increased by 5.1 percent and reached Rs 40,986 crore. This time too, the company has not disclosed how much it is paying unit-wise in the email sent to the employees.

Let us tell you that Infosys had stopped increasing salaries in the financial year 2021-22 to save cash. It started its annual appraisal cycle in October last year and issued salary revision letter for the last pay cycle in December 2023.

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Regarding changes in the rules of Labor Code, the government has taken many decisions on new rules regarding working hours, annual leave, pension, PF, take home salary, retirement etc. between the Labor Ministry, Labor Union and representatives of the industry and some Still left. In this, there was a demand to increase the Earned Leave of the employees from 240 to 300. This time it is expected that there may be some talk regarding this in the budget.

Earned leaves will increase

People associated with labor unions want the limit of earned leave to be increased from 240 to 300 days. New laws related to labor reforms were passed by the Parliament in September 2020. Now the Central Government is trying to implement these as soon as possible. Although the government wants to implement these as soon as possible but has not been able to do so. Now this time it is expected that the government can announce something in this regard in the budget.

These changes will happen

According to the rules of Labor Code, basic salary should be 50% or more of the total salary. This will change the salary structure of most employees. If basic salary increases, the amount deducted in PF and gratuity will increase. This will reduce the salary in hand. However, PF may increase.

Budget will be presented on 1 February

Union Finance Minister Nirmala Sitharaman will present the budget (Union Budget 2024) for the sixth time on 1 February 2024. Nirmala Sitharaman is going to present the last budget of the second term of the Modi government because after that Lok Sabha elections are going to be held across the country. In such a situation, the government can make a special announcement to capitalize on its vote bank, especially the employed people.

The government can make an announcement regarding bringing labor laws in the budget. The government has been planning to implement the labor law across the country for a long time, but due to lack of consensus among the states, there is a delay in implementing the law. However, Finance Minister Nirmala Sitharaman has said that no major announcements will be made in the budget but the government can make some special announcements for its vote bank.

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First let’s talk about dearness allowance. AICPI index has reached 139.1. In such a situation, a 4 percent increase in the Dearness Allowance (DA Hike) of central employees is considered certain. This will bring a big jump in the salaries of the employees. More than 1 crore employees and pensioners will directly benefit from this.

The Modi government at the Center can once again increase the dearness allowance (DA Hike) of central employees by 4% for the new year i.e. January 2024. However, this increase will happen in March. AICPI figures till November 2023 have arrived, which are pointing towards an increase of 4 percent. If dearness allowance is increased by 4 percent then it will reach 50% (Dearness Allowance).

Central employees will get double good news

Now let’s talk about the second good news. Central employees can also get the gift of fitment factor. This has been in demand for a long time. Now there are talks of it increasing this year. If this happens, there will be a big jump in salary. Due to increase in fitment factor under the 7th Pay Commission, the basic salary of central employees will increase by Rs 8,860.

This increase can be given after DA Hike. At present, the fitment factor is 2.57 times. It is likely to increase to 3.68 times in the coming days. If this happens then the basic salary at Level-3 will increase from Rs 18000 to Rs 26000. There will be a direct increase of Rs 8000 in the salary of the employees. Besides, this will also impact the payment of DA.

X Class & TPTA – Basic salary Rs 18000 per month

Basic Pay: Rs 18,000
Dearness Allowance (46%): Rs 8,280
House Rent Allowance (27%): Rs 5,400
Transport Allowance: Rs 1,350
DA on Transport Allowance: Rs 621
Gross Salary: Rs 33,651

Salary will increase by Rs 49,420 due to Fitment Factor

If the basic salary of a central employee at Level-3 is Rs 18,000, then excluding allowances his salary will be Rs 18,000 X 2.57 = Rs 46,260. If the fitment factor is increased to 3.68 times then the salary will reach 26000X3.68= Rs 95,680. Employees will get bumper benefits in this. This means that overall the employees will get an increase of Rs 49,420 as compared to the current salary. This calculation is on minimum basic salary. Those with maximum salary can get bigger benefits.

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Decision can also be taken on case to case basis

A committee headed by the Chief Secretary has been constituted vide Government Order No. 183-JK (HE) of 2023 to scrutinize each case or decide the eligibility for age increase on any case. This will work to decide the age in these cases. The Higher Education Department (HED) has informed the Registrar, University of Jammu, about the government’s decision for necessary action and dissemination of information.

These will be the parameters

According to the government order, before reaching the age of 62 years, the performance of university professors will be thoroughly reviewed and evaluated on several parameters. The committee will consider the performance of the professor, including his physical and mental health and suitability for teaching.

Decision will be taken on the basis of these

According to the order, the committee will additionally evaluate academic contribution of professors considering parameters such as number of publications, books, chapters of books, seminars, conferences and workshops attended, development of new courses and courses, patents. The order states that the committee will evaluate the contribution of professors to the institute, including their participation in university committees and their contribution to the betterment of the institute.

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The fitment factor can be increased to three or 3.68

At present, no official confirmation has been made on this. The fitment factor of the central employees is currently 2.57, while the dearness allowance is 42 percent. In view of the upcoming elections, the fitment factor under the 7th Pay Commission may be increased to three or 3.68. According to the recommendation of the Seventh Pay Commission in 2024, preparations can be made to increase the fitment factor.

Possible increase in basic salary of central employees

Actually elections are to be held in 2024. In this case, the fitment factor can be implemented from 2026. This will also benefit more than fifty lakh employees. An increase will also be seen in the basic salary of central employees. At present, the basic salary of the employees is ₹ 18000, excluding allowances, their salary is ₹ 46260, while the salary can be ₹ 95680 if the fitment factor is 3.68.

The fitment factor was increased in 2016

Earlier in 2016, the fitment factor was increased. The same Seventh Pay Commission was also implemented in the same year. In such a situation, the minimum salary of the employees was increased from ₹ 6000 to ₹ 18000. On the other hand, if the rates of fitment factor are revised, then the salary of the employees will increase from ₹ 18000 to ₹ 26000. After which an increase of 44.44% can be seen in the salary of the employees.

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For labor reform in the country, the central government may soon implement 4 new labor codes. Minister of State for Labor Rameshwar Teli has given written information regarding this in the Lok Sabha. After the implementation of the new labor codes, there will be a change in the salary, leave, provident fund and gratuity of the employees.

There will be no compulsion of 5 years continuous job in any institution for government gratuity. However, there has not been a formal announcement on this from the government yet. But, it will come into effect as soon as the new labor law comes into force.

How much gratuity is received?

As of now, according to the rule regarding gratuity, gratuity is made on completion of 5 years in any institution. On completion of 5 years, the calculation of gratuity is done on the basis of your salary in the month on which you leave the company. For example, A worked in a company for 10 years. In the last month, 50 thousand rupees come in A’s account. In that his basic salary is 20 thousand rupees. 6 thousand rupees is his dearness allowance.

Gratuity will be calculated on the basis of 26 thousand (Basic and Dearness Allowance). Working days are considered 26 in gratuity. Now divide 26 thousand by 26. The result came out to be 1000 rupees. Now it has to be multiplied by 15 days because it is added according to 15 days in a year. The result will be 15000. If he worked for 5 years, he would get a total of Rs 75,000 as gratuity.

Gratuity is mentioned in the social security bill

In Chapter 5 of the Social Security Bill, 2020, information about the rule of gratuity has been given. Apart from salary, pension and provident fund, gratuity is also given to the employees working in the same company for a long time. Gratuity is the reward an employee receives from the company. If the employee fulfills certain conditions of the job, he is paid guaranteed gratuity under the prescribed formula. A small part of gratuity is deducted from the salary of the employee, but the major part is paid by the company.

Will you get gratuity even after 1 year of service?

According to the information given in the draft copy filed in the Lok Sabha, if any employee works for one year at any place, he will be entitled to gratuity. The government has made this arrangement for fixed term employees ie those working on contract. Even if a person works for a fixed period of one year on a contract with a company, he will get gratuity. The employee working on contract is now being given the right to social security like a regular employee. Apart from contract employees, those working in seasonal establishments will also get the benefit of this.

Who will get benefit from Gratuity Act 2020?

Only fixed term employees will get the benefit of Gratuity Act 2020. For others also the old rule will continue. At present, gratuity is fixed on the basis of 15 days salary every year on completion of five years of service. Gratuity is given to the employees by the company. Its maximum limit is 20 lakh rupees.

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This time the interest is being paid by the government at the rate of 8.1%. However, this interest rate is the lowest in the last 40 years. Despite this, the employees have been waiting for the payment of PF for a long time. Meanwhile, EPFO ​​has given big information. If the account holders want their entire interest amount in the account, then they have to take special care of some things. Otherwise, they may have to face loss in the amount of interest.

In fact, lakhs of employees working in the private sector change their jobs every few months. After joining a new job, employees open new PF accounts in the new company from their old UAN. In such a situation, the money of the new company comes in the account and the amount stops coming in the old PF account. In such a situation, the employees may have to bear the loss of interest amount due to not getting the account done.

In such a situation, EPFO ​​has advised the employees to link all the accounts together. In doing so, interest can be paid on the amount collected in all the accounts. If the amount is more, the interest will also be higher.

PF account can be merged as soon as the UAN number is activated by the employees.

• To merge PF account, visit the official website of EPFO.
• Click on Services to login.
• Click on Apply 1 EPF Account
• a form will open
• Enter registered mobile number
• Enter the OTP number and the old PF account will be displayed as soon as you enter the OTP
• accept submit
• After sending the information, the account will be merged in a few days.

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