DA Hike 7th Pay Commission: Central Govt Employees Likely to Get a Hike. How to Calculate

DA Hike 7th Pay Commission: The government is likely to bring in some more good news for central government employees.

 

Under the 7th Pay Commission, the Union government led by Prime Minister Narendra Modi, as per media reports, is likely to announce a hike in the fitment factor for central government employees in the coming days. This will in turn increase their salary.

 

According to a report by Zee News, the government is mulling a hike on the fitment factor for its employees. This hike, as mentioned above, will increase the minimum wages of a government employee. Several government employees unions have been already demanding that the fitment factor be raised from 2.57 times to 3.68 times, and a decision on this is still pending.

 

Other than this, the unions have been also demanding to increase the minimum wages from Rs 18,000 to Rs 26,000. As per the report by Zee News, a decision on raising the fitment factor is expected soon from the government.

 

If the government hikes the fitment factor, the minimum wages of central government employees will also increase automatically. A fitment factor is a multiplying number that is used by the 7th pay commission to determine the basic pay of an employee.

 

Currently, employees are receiving their payment based on the fitment factor of 2.57 per cent, which is used to calculate their basic pay. If the government increases the fitment factor to 3.68 per cent, as asked by the unions, the minimum salary of an employee will be hiked by Rs 8,000. This will mean that employees will receive a minimum pay of Rs 26,000, up from Rs 8,000 if the fitment factor is raised.

 

A rise in the basic pay will also automatically mean a rise in other allowances as well, including the dearness allowance. It is to be noted that though DA is hiked twice a year — in January and July — no such announcement has been made this year yet. Currently, employees receive a DA at the rate of 31 per cent of their basic pay under the 7th Pay Commission. Therefore, an increase in basic pay will also mean an increase in the DA amount for central government employees.

 

However, there is no official statement regarding this, and the government too has not commented anything on it. Dearness allowance, or DA, is generally increased twice a year, in January and July. However, there was no hike announced yet for the month of January this year. Churned out under the 7th Pay Commission, DA occupies one of the most important portions of any employee, especially those with government jobs.

 

It is also being anticipated that the government will give out arrears for 1.5 years at one go by giving Rs 2 lakh to the employees as a one-time settlement.

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