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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For this, a Labor Commissioner of Kerala has passed an order regarding gratuity calculation . According to the order, this order can be heavy on the companies.

In fact, an old employee of private sector HDFC Bank had filed a petition before the controlling authority under the Payment of Gratuity Act, 1972. He worked in the bank for 16 years before leaving the job in 2022. However, questions started to arise on the gratuity paid by HDFC Bank to him. Which he challenged before the controlling authority.

According to PV Unnikrishnan Pillai, while filing the petition on June 8, 2022, he had said in his petition that the bank should have paid gratuity not only on basic pay but also by adding personal pay together. He presented his plea before the controlling authority to get the Payment of Gratuity Act 1972 properly implemented.

Company should pay interest along with basic pay

This argument of PV Unnikrishnan Pillai was accepted by the Controlling Authority and along with this a historic order was also passed. The authority said that HDFC Bank should pay him Rs 7.22 lakh along with 10% simple interest. This is in addition to the gratuity amount of Rs 5.95 lakhs already paid by the bank to the employee. Let us tell you, this order had come only in July 2022, but both the bank and the petitioner were informed about this order on 20 January 2023.

How is Gratuity calculated?

Last taken salary X years of service X 15/26 to calculate gratuity. Suppose if someone’s basic salary is 25 thousand rupees and he gets 15 thousand dearness allowance ie DA and 10 thousand rupees in other items. In this way the total salary becomes 50 thousand rupees. Now if that person has worked for 20 years and 10 months, then his total years will be considered as 21. Gratuity calculation on this will be done on the basis of 50 thousand X 21 X 15/26. In this way, the employee will get a total of Rs 6,05,769 as gratuity.

Who gets the benefit?

If an employee works in a company continuously for five years, then he becomes entitled to get gratuity. The amount that is made after adding the basic salary and dearness allowance of the last month of the job is given to that person.

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