7th Pay Commission: The government can soon give the good news of increasing the salary of the central employees. The government may decide to increase Dearness Allowance (DA) and fitment factor.
If there is an increase in the fitment factor, then the minimum basic pay of central employees will increase from Rs 18,000 to Rs 26,000. To bear the increasing inflation every year, the central government gives dearness allowance to its employees twice a year.
There can be an increase in DA-
If nothing goes wrong, the central government can increase DA by up to 4 percent from July 1. After this increase, DA will increase from 42 per cent to 46 per cent. If the report of All India Consumer Price Index is to be believed then the government may announce an increase in DA in July. The DA was last increased by the central government in March.
However, the increased DA in March will be added from January 1, 2023. In view of the increase of 4 per cent, if your minimum basic salary is Rs 18,000, then every month from July onwards, Rs 720 more will come in it. If added on an annual basis, you will get an increase of Rs 8640.
Government can also increase the fitment factor-
Apart from DA, the government can also increase the fitment factor this time. Currently the fitment factor is 2.57. Let us tell you that Saracar uses the fitment factor to calculate the salary of the employees. The government can increase this fitment factor from 2.57 to 3.68.
How is DA hike calculated?
- The Central Government calculates DA and DR on the basis of a fixed formula.
- 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