7th Pay Commission latest news: Good news is coming one after the other for central employees. Many gifts have already been received. Now there is news that there is going to be a direct increase in his salary and this increase can be huge. That’s why the latest updates must be read by the employees.
7th Pay Commission latest news: There is good news for central employees. Now his wish seems to be coming true. In the latest update, it has come to know that his fitment factor file seems to be increasing now. At the same time, a decision can be taken on this at the end of the year 2023. Although, there is still time to get the gift, but there is a lot of hope that there can be a bumper increase in salary. This increase in salary will be at the basic level and will happen only under the 7th Pay Commission. That means the central employees can get this gift even before the coming of the next pay commission.
7th Pay Commission: How much can the fitment factor increase?
Dearness allowance of central employees has already increased to 38 per cent. Next year it is to be increased twice more. But, there was a long standing demand of the employees that their fitment factor should be increased as per the recommendations of the Seventh Pay Commission. Now it seems possible to do so. If sources are to be believed, the government may consider this issue next year and a decision may be taken by the end of the year 2023. At present, the minimum salary of central employees is Rs 18000 on the basis of Fitment Factor. The fitment factor currently stands at 2.57 times. The demand of the central employees was that it should be increased to 3.68 times under the recommendations of the 7th Pay Commission. This will bring a big jump in his basic salary. At 3.68 times, the minimum salary will be Rs 26,000. But, taking out the middle way, the government can increase it to 3 times. Although,
How much will the salary increase if the fitment factor increases?
If the fitment factor is increased to 3 times, then there will be a bumper increase in the salary of the employees. Suppose the basic salary of a central employee is Rs 18,000, then at present, excluding allowances, his salary will be 18,000 X 2.57 = Rs 46,260. If it is considered at the maximum rate under the recommendations of the Pay Commission, then by 3.68 times the salary will be 26000X3.68 = Rs 95,680. Wherein, with 3 times the fitment factor, the basic salary will be Rs 21000 and the total salary excluding allowances will be Rs 21000X3 = Rs 63,000.
How is the salary determined by the Fitment Factor?
The fitment factor has a big role in the salary of central employees. According to the recommendations of the 7th Pay Commission, apart from salary allowances, the salary of central employees is determined by their basic salary and fitment factor. This is the factor due to which the salary of central employees increases more than two and a half times. As mentioned above according to the calculation. According to the recommendations of the 7th Pay Commission, the fitment factor which is 2.57. While fixing the salary, the Basic Salary along with Dearness Allowance, Travel Allowance, House Rent Allowance is multiplied by the 7th Pay Commission’s fitment factor of 2.57.
EPF, Gratuity is also included in the salary
Apart from allowances, there are other components in the salary of central employees. Salary also includes Monthly Provident Fund and Gratuity. EPF and Gratuity are linked to Basic Salary and DA. There is a separate formula for calculating EPF and gratuity of a central employee. All the allowances and deductions are done from CTC then the take home salary of the central employee is decided.