After giving its employees a Diwali gift with a hike in dearness allowance, HRA and TA, the central government is mulling over another bumper increment on the new year. The increment is likely to come as an increase in the fitment factor, the minimum wage or the basic salary of the central government employees according to the recommendation of 7th pay commission, reported Zee Business. People, working under the central government, have been requesting the authorities to increase the fitment factor from 2.57 per cent to 3.68 per cent. Now, finally, the decision is likely to be taken before the presentation of Union Budget 2022.
The increment will be included in the expenditure of the upcoming budget after getting a green signal from the Union Cabinet. Increment in the fitment factor will not only increase central government employees’ salaries but will also result in a rise in the minimum wages of central government employees. Currently, salaries are calculated at the fitment factor of 2.57 per cent and according to this basic salary is RS 18,000. However, if the government agrees to the proposed 3.68 per cent fitment factor, the basic salary will move up by Rs 8000 and reach a Rs 26,000 level.
During the previous dialogues between central government employees and government representatives, the cabinet secretary had assured about the increment in the fitment factor
The increment of the fitment factor is going to bring huge relief for lakhs of central government employees.
Meanwhile, the government could hold a meeting with the employees representative organization to take a final call on the pending arrear issue in the DA increment. The government increased the DA of its employees in July this year but employee organizations have been demanding the application of the revised DA from January 1, 2020.
The central government had withheld the payment of DA in 2020 due to financial troubles caused by the COVID-19 pandemic. While DA payment returned with an increment in July this year, employees have been demanding the application of revised rates as per the previously proposed dates.
The government has been communicating with the employees regarding their concerns but a final outcome is due. If the government decides to pay the DA arrears, it will bring a huge relief to thousands of employees and pension holders.
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