Central Government Employees: Good news! Salary will increase, Finance minister can announce in the budget, check details
Union Budget 2023: Salary of central employees may increase. In fact, Finance Minister Nirmala Sitharaman can make an announcement in the budget regarding the fitment factor, which can have an impact on the salary of government employees.
Govt Employees Salary Hike: In the budget to be presented on February 1, 2023, the New Year’s happiness of government employees can increase even more. According to media reports, the fitment factor of the salaries of government employees is likely to be changed after the presentation of the Union Budget 2023. Due to which the salary of government employees will increase. Under the increase in the fitment factor, the minimum salary can be increased from Rs 18,000 at present to Rs 26,000. The fitment factor is a value which is multiplied by the basic pay i.e. Basic Pay to determine the salary of the employees .
The fitment factor is currently 2.57 percent. That is, if someone is given a basic pay of Rs 15,500 in 4200 grade pay, then his total pay will be Rs 15,500×2.57 or Rs 39,835. The 6th CPC recommended a fitment ratio of 1.86. According to reports, the employees are demanding the government to increase the fitment factor to 3.68. This hike will increase the minimum wage from Rs 18,000 to Rs 26,000.
DA may increase in March
Meanwhile, under the 7th Pay Commission, central government employees are also expected to increase their Dearness Allowance ie DA in March 2023, which will be effective from January 1. The government will also increase Dearness Relief ie DR for pensioners. Apart from this, according to reports, the employees are also likely to get DA arrears of 18 months. Dearness Allowance and Dearness Relief are changed twice a year, which is effective from January 1 and July 1. Earlier, the last increase was done in September 2022, which benefited about 48 lakh central government employees and 68 lakh pensioners. During this, DA was increased by 4 percent to 38 percent. Earlier, the government had increased DA by 3 percent to 34 percent in March under the Seventh Pay Commission.
Government takes such decision on DA hike
The government decides to increase DA on the basis of inflation rate in the country. If inflation is high, there is a possibility that DA will be increased more. Currently, retail inflation in India is above the RBI’s comfort zone of 2 to 6 percent for the last 10 months. Due to this, more increase in DA can be seen. The DA and DR hike will be decided on the basis of percentage increase in the 12 monthly average of All India Consumer Price Index (AICPI) for the period ending June 2022. However, the Central Government revises the allowances every year on January 1 and July 1 and the decision is generally announced in March and September. In 2006, the Central Government changed the formula for calculating DA and DR for Central Government employees and pensioners.
House rent allowance rules updated
The Finance Ministry recently updated the House Rent Allowance (HRA) rules for central government employees under the 7th Pay Commission and said that they will not be entitled to HRA in cases where they share government accommodation with another government employee. does. He lives in the accommodation given to his parent, son or daughter by Public Undertakings, Life Insurance Corporation of India, an Autonomous Public Undertaking of the Central or State Government. His or her spouse has been given accommodation by the Central Government, State Government, Autonomous Public Undertaking and Semi-Governmental Organization like Municipality, Port Trust etc. at the same station, whether he/she lives in that accommodation or stays on rent elsewhere.