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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Not only this, at the end of the financial year, there is full expectation of appraisal of the employees. At the same time, the dearness allowance of July will be paid in the salary of October. That’s why they will also get DA Arrears of 3 months. It is clear that after July 2023, there will be a bumper increase in the salary of central employees.

Employees will also get these allowances, not only Dearness Allowance will increase in July for central employees. Rather, other allowances will also be available. This includes Travel Allowance and City Allowance. At the same time, there is a big increase in their retirement benefits like Provident Fund and Gratuity due to increase in dearness allowance. In such a situation, this year is bringing great news for the central employees.

Money will be received by adding arrears of 3 months.

The dearness allowance of Central Government employees will be applicable from July 2023. In the coming days, it will be clear from the numbers of CPI-IW index that how much dearness allowance has to be increased. Inflation figures from January 2023 to June 2023 will decide how much dearness allowance has to be increased.

After this it will be announced in October. But, if applicable from July, the arrears of July, August, September (DA Arrears) should also be given. Due to the payment of arrears, a huge amount will come into the account of the employees.

Dearness Allowance (DA) may increase by 4 percent.

Dearness Allowance (DA) of central employees has been increased from January 2023 in March. There has been an increase of 4 percent in this. At the same time, now the next hike is to be for July. The numbers for 2 months have come for the dearness allowance which is decided by the numbers of AICPI index.

The index has reached around 44 per cent in January and February. Means 2 percent more dearness allowance has increased. But, the numbers are to come by June. It will be known in August that how much the dearness allowance will increase. Experts believe that the next increase can also be of 4 percent. In such a situation, the total DA will increase to 46 percent.

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There will be a bumper increase in the salary of central employees from July 2023, while there are also chances of promotion. The next 6 months are going to be wonderful for the central employees. In July 2023, dearness allowance (DA) will increase once again. At the same time, Travel Allowance (TA) will also increase.

Apart from this, there is full expectation of appraisal of the employees. At the same time, the dearness allowance of July will be paid in the salary of October. That’s why they will also get DA Arrears of 3 months. It is clear that after July 2023, there will be a bumper increase in the salary of central employees. In such a situation, one after the other good news is waiting for him in the coming 6 months.

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Other allowances will increase with dearness allowance

Dearness Allowance will not only increase in July for central employees. Rather, other allowances are also bound to increase. This includes Travel Allowance and City Allowance. At the same time, there is a big increase in their retirement benefits like Provident Fund and Gratuity due to increase in dearness allowance. In such a situation, this year is bringing great news for the central employees.

Central employees will be promoted

Promotion is also due at different levels of central employees. The appraisal window remains open till June. After this it is processed from July. After filling the self-assessment by June, there will be an officer review.

After this the file will move forward. The employees who will be promoted, their salary will also increase tremendously. The increase in promotion and salary will be according to the recommendations of the 7th Pay Commission. The HR-soft window of the Annual Performance Assessment Report module has been opened online in the EPFO ​​department.

Will get arrears of 3 months

The dearness allowance of central government employees will be applicable from July 2023. In the coming days, it will be clear from the numbers of CPI-IW index that how much dearness allowance has to be increased. Inflation figures from January 2023 to June 2023 will decide how much dearness allowance has to be increased.

After this it will be announced in October. But, if applicable from July, the arrears of July, August, September (DA Arrears) should also be given. Due to the payment of arrears, a huge amount will come into the account of the employees.

Also Read: Flight Cancelled: Big news for passengers! Many flights of this route of Air India…

Dearness Allowance (DA) may increase by 4 percent

The dearness allowance of central employees has been increased from January 2023 in March. There has been an increase of 4 percent in this. At the same time, now the next hike is to be for July. The numbers for 2 months have come for the dearness allowance which is decided by the numbers of AICPI index.

The index has reached around 44 per cent in January and February. Means 2 percent more dearness allowance has increased. But, the numbers are to come by June. It will be known in August that how much the dearness allowance will increase. Experts believe that the next increase can also be of 4 percent. In such a situation, the total DA will increase to 46 percent.

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After the increase in DA, the way for increase in Travel Allowance has become a bit clear. Soon this allowance of the employees may increase.

Will get benefit in travel allowance

According to media reports, according to the notification issued by the Department of Expenditure (DoE) of the Ministry of Finance, now central employees will be able to travel by Tejas train on their official tour. The Finance Ministry has issued a notice, in which this information has been given.

According to the notice of the ministry, the government has allowed concession in travel in Tejas Express trains for the officials for official tour. According to the office memorandum, this will be applicable for tour, training, transfer and retirement travel in addition to the given trains. The eligibility to travel in Tejas Express trains will be the same as for Shatabdi trains.

TA is divided into 3 categories

Travel Allowance is divided into 3 categories according to the pay matrix level. In the first category, TA is Rs 1350, Rs 3600 for 3-8 level employees and Rs 7200 travel allowance for above level 9 employees.

Travel allowance is decided on the basis of cities

For cities with costlier transport allowance, Level 9 and above employees get Rs 7,200 TA. In cities smaller than that, this allowance is Rs 3,600. Whereas, the rest of the cities get TA of Rs 1,800. 1,350 TA is available for Level 1 and Level 2. Thereafter TA is Rs 900.

These employees have more TA

The employees who are given car facility by the government are mostly cabinet secretary level officers. He gets TA of Rs 15,750 per month. In government jobs, the government gives the facility of car to the employees of pay level 14 and above pay grade.

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The government has increased the DA by 4 per cent to 38 per cent. After the increase in DA, the way for increase in Travel Allowance has been cleared a bit. This allowance of employees may increase soon.

Will get benefit in travel allowance

According to media reports, according to the notification issued by the Department of Expenditure (DoE) of the Ministry of Finance, now central employees will be able to travel by Tejas train on their official tour. The Ministry of Finance has issued a notice, in which this information has been given. According to the notice of the ministry, the government has allowed concession in travel in Tejas Express trains for official tours by the authorities.

According to the Office Memorandum, this will be applicable for tour, training, transfer and retirement travel in addition to the given trains. The eligibility to travel in Tejas Express trains will be the same as for Shatabdi trains.

TA is divided into 3 categories

Travel Allowance is divided into 3 categories according to the pay matrix level. In the first category, TA is Rs 1350, Rs 3600 for 3-8 level employees and Rs 7200 travel allowance for above level 9 employees.

Travel allowance is decided on the basis of cities

For cities with costlier transport allowance, Level 9 and above employees get Rs 7,200 TA. In cities smaller than that, this allowance is Rs 3,600. Whereas, the rest of the cities get TA of Rs 1,800. 1,350 TA is available for Level 1 and Level 2. Thereafter TA is Rs 900.

These employees have more TA

Most of the employees to whom the government provides car facility are officers of the level of cabinet secretary. He gets a TA of Rs 15,750 per month. Car facility in government jobs is provided by the government to employees with pay level 14 and above pay grade.

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Dearness allowance of central employees has already increased. The central government has now given another gift to the employees. Earlier there was an increase in Dearness Allowance and now Travel Allowance (TA) has also increased. That is, once again a huge amount is going to come in the account of the employees.

Due to the increase in dearness allowance, there was an increase in the TA of the employees. But now the traveling grade has been increased. Central employees will now get a chance to travel in Tejas train apart from Rajdhani and Duronto Express. It is worth noting that recently dearness allowance was increased by 4%. Now the total DA of the employees has increased to 38 percent, and the effect of the increase in DA is visible on TA.

Will get the benefit of travel allowance

According to the notification issued by the Department of Expenditure (DoE) of the Ministry of Finance, now central employees will be able to travel by Tejas train on their official tour. The government has given permission to the officials to use this train for their official travel plans. Actually, IRCTC’s Tejas Express is the country’s first private and premium class train, and after this announcement by the Ministry of Finance, now employees will be able to travel by it.

See TA calculation

Actually, Travel Allowance is divided into 3 categories on the basis of pay matrix level. The first category – Higher Transport Allowance is from the city. The formula for TA calculation for this is Total Transport Allowance = TA + [(TA x DA% )\/100].

Know how much TA is available in which category?

Now let’s talk about how TA is calculated. Under this, TPTA is given Rs 1350 for 1-2, Rs 3600 for 3-8 level employees and Rs 7200 for level 9 above.

Under this, employees of level 9 and above get TA+DA of Rs 7,200 for cities with higher transport allowance. For other cities, this allowance is Rs 3,600 +DA. At the same time, employees up to 3-8 get 3,600 plus DA and 1,800 plus DA, while talking about level 1 and 2, this category gets Rs 1,350 +DA for first class cities, while 900 for other cities. Gets Rs +DA.

These employees get more TA

With this, let us tell you that the employees who have got the facility of car, in which cabinet secretary level officers come, they are paid Rs 15,750 + DA per month. Let us tell you that the facility of car is available to employees with pay level 14 and above pay grade.

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Due to the increase in dearness allowance, there was an increase in the TA of the employees. But now the traveling grade has been increased. Central employees will now get a chance to travel in Tejas trains apart from Rajdhani and Duronto Express. It is worth noting that recently the dearness allowance was increased by 4%. Now the total DA of the employees has increased to 38 percent, and the effect of the increase in DA is visible on the TA. 

Travel allowance will benefit

According to the notification issued by the Department of Expenditure (DoE) of the Ministry of Finance, now central employees will be able to travel by Tejas train on their official tour. The government has approved the officials to use this train for their official travel plans. Actually, IRCTC’s Tejas Express is the country’s first private and premium class train, and after this announcement by the Ministry of Finance, employees will now be able to travel in it.

See TA calculation

Actually, Travel Allowance is divided into 3 categories on the basis of pay matrix level. The first category – Higher Transport Allowance is from the city. For this the formula for TA calculation is Total Transport Allowance = TA + [(TA x DA% )\/100].

Know how much TA is available in which category?

Now let’s talk about how TA is calculated. Under this, TPTA is given Rs 1350 for 1-2, Rs 3600 for 3-8 level employees and Rs 7200 for level 9 above.

Under this, employees of Level 9 and above get TA + DA of Rs 7,200 for cities with higher transport allowance. For other cities this allowance is Rs 3,600 +DA. At the same time, employees up to 3-8 years get 3,600 plus DA and 1,800 plus DA, while in Level 1 and 2, Rs 1,350 + DA for first class cities in this category, while 900 for other cities. Get +DA of Rs.

These employees get more TA

With this, let us tell you that the employees who have got the facility of car, in which cabinet secretary level officers come, they are paid Rs 15,750 + DA per month. Let us tell you that the facility of car is available to employees with pay level 14 and above pay grade. 

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Along with increasing DA, the amount of PF and Gratuity of the employees will also increase. At the same time, City and Travel Allowance will also increase.

Apart from this, revision in HRA of Central Employees will also be done on time. Its benefit will be more than 47.68 lakh central employees and more than 68.52 lakh pensioners. There will be a jump in salary from 20 thousand to 2.50 lakh.

Dearness allowance will increase by 4%?

• The Modi government at the Center can announce an increase in 4% dearness allowance and dearness relief for the second half in August. After the release of the June data of the AICPI index, it is believed that the DA of the employees will increase by 4 to 5%. If it is implemented from July 1, then the arrears of July-August will also be available.
• If the basic salary of a central employee is Rs 20,000 per month, then at the current rate of 34 per cent, he is getting DA of Rs 6,800 per month, then at 38 per cent, the amount will increase by Rs 800 per month to 7,600. That is, you will get a profit of Rs 9,600 annually, according to this, the annual DA of an employee with basic salary of Rs 20,000 will be Rs 91,200.
• If we look at the maximum basic salary of Rs 56,900, then the total increase in annual dearness allowance will be Rs 27312. That means Rs 2276 will increase every month against the existing DA. His total annual DA will reach Rs 2 lakh 59 thousand 464.

18 Months DA Arrear to be paid?

• The outstanding DA arrears of 18 months of central employees-pensioners (7th Pay Commission Central Government employees) can also be considered. In this regard, a meeting of the Joint Advisory Mechanism (JSM) of the officers of the Department of Personnel and Training and Department of Expenditure (DOPT) of the Ministry of Finance may be held soon. However, the official confirmation is yet to be done. will get accordingly.
• If calculated for Level-13 (7th CPC basic pay scale Rs 1,23,100 to Rs 2,15,900) or Level-14 (pay scale), dearness allowance arrears in the hands of an employee is Rs 1,44,200 to 2 Rs 18,200 will be paid.
• If the employee’s basic salary is Rs 18,000, he can get arrears of DA for 3 months (4,320+3,240+4,320) = Rs 11,880. If the employee’s basic salary is Rs 56,000, he can get 3 months (13,656 + 10,242 + 13,656) ) = Rs 37,554 DA arrears. Level-13 (7th CPC basic pay scale Rs. 1,23,100 to Rs. 2,15,900). Level-14 (pay-scale) will get DA arrears of Rs. 18,200 Rs.

Possible increase in house rent allowance?

Currently, HRA rates are 27%, 18% and 9% depending on the category of the city, it is possible to increase it up to 3%. It is believed that soon the HRA of X category employees can be increased by 3 percent, Y category HRA by 2 percent and for Z category 1 percent HRA can be increased. Thereafter, it will increase from 27% to 30%, albeit in case the DA rises from 34 per cent to 50 per cent.

According to the 7th Pay Matrix, the maximum basic salary of employees is Rs 56,900, then if HRA is 27 percent, there will be a profit of 20,484 in the salary. For example, if the house rent allowance is Rs 56900 x 27/100 = Rs 15363 per month, then 30% HRA If it is Rs 56,900 x 30/100 = Rs 17,070 per month, that means the total difference will be Rs 1707 per month.

The annual HRA will increase by Rs 20,484. This rate varies according to the area and city, currently the minimum HRA for all three categories is Rs 5400, 3600 and 1800. According to the same 7th Pay Matrix, the minimum salary of the employees is 18000 and the maximum basic salary is Rs 56,900.
These allowances will also increase

According to media reports, along with dearness allowance, employees will also get the benefit of House Rent Allowance, Travel Allowance, Provident Fund, City Allowance and Gratuity.

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If you are employed, then your salary (salary) includes many such options (perks), which can be helpful in reducing the tax burden. Of these, some options require full payment of tax, while there are 10 such options which come under tax exemption. In such a situation, every employed person should pay attention to whether he is able to take advantage of the facilities provided by the company or not.

1. Employees’ Provident Fund (EPF)

According to the EPF Act, the company invests 12 percent of the basic salary and allowances of the employee in EPF. The company also has to invest the same amount. The employee’s contribution is tax exempt, which is up to Rs 1.5 lakh. This exemption is available under section 80C of the Income Tax Act. Interest earned on this also comes under the purview of tax exemption.

2. Leave Travel Allowance (LTA)

For the employees to travel anywhere in the country with their family, companies provide Leave Travel Allowance, which is tax exempt. This discount is available only on travel by train, airplane or public transport. In this, the shortest distance to reach the destination is made the basis. This part of the salary can be deposited by the employee by depositing the booked ticket with the company. This benefit is available only if you travel twice in four calendar years.

3. House Rent Allowance (HRA)

This part of the salary is given to the employee in lieu of payment of house rent. To get tax exemption on this, it is necessary that it should be part of the salary. You can claim tax exemption on the amount received for HRA with the specified limit.

4. Car Maintenance Allowance

Bank Re-imbursement can be claimed up to a limit on the cost of the car, as per the market. You can also get tax exemption on this. However, it depends on whether the car belongs to the company or the employee. This reimbursement is available for some special office work and many personal work.

5.
Most of the multinational companies give food coupons for food and drink during the work in the food coupon office. One can get tax exemption of up to Rs 50 on one meal. Twice a day for 22 working days in a month can avail tax exemption of up to Rs 26,400 annually.

6. Children Education Allowance

In lieu of payment of fees for the child, companies pay an education allowance of Rs 1,200 annually or Rs 100 per month to the employee. This facility is available for two children only. In addition, one can claim tax exemption on payment of tuition fees under Section 80C of the Income Tax Act.

7. Discount on Hostel Expenses

Companies give hostel expenditure allowance to their employees. Under this, the employee gets an annual allowance of Rs 3,600 or Rs 300 per month on the hostel expenses of the child, which is tax-exempt. This discount is available for maximum 2 children only.

8. Phone Bill Re-imbursement

This includes both telephone and mobile phone bill re-imbursement. Telephone charges including broadband internet connection are covered under this. Some companies provide this facility to their employees, which comes under the purview of tax exemption.

9. Uniform Allowance

The employees get this allowance for the maintenance of their uniform while on duty. You can also get tax exemption on the expenses incurred in the purchase and maintenance of the uniform.

10. Gift Voucher

Companies sometimes give gifts to their employees, on which tax exemption is available. However, the condition in this is that its total value does not exceed Rs 50,000 annually, only then can you get tax exemption.

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