7th Pay Commission: If you are an employee then this news is for you. In fact, according to a recent update, it is being said that by increasing the fitment factor of the employees, the salary of the employees will increase three times. To know complete information related to this update, read the news completely.
There was a bumper increase in the salary of central employees in the year 2016. The 7th Pay Commission (7th CPC) for central employees was implemented this year. On the basis of the recommendations of 7th CPC, Fitment Factor was implemented to increase the minimum salary of central employees. Due to the fitment factor, the minimum salary of central employees directly increased from Rs 6000 to Rs 18000.
The fitment factor is fixed at 2.57 times the basic salary. But, the demand is to increase it 3 times. This demand is happening since 2017. But, no hearing has taken place on this yet. If the fitment is increased 3 times then the minimum salary of central employees will go above Rs 26000.
Fitment factor is applied on basic salary-
Fitment factor plays the biggest role in determining the salary of central employees (CG Employees Salary). According to the recommendations of the 7th Pay Commission, the total salary of central employees is determined by the basic salary and fitment factor apart from the allowances. Meaning, the salary of central employees is calculated and increased by two and a half times.
What is the role of Fitment Factor?
As per the recommendations of the 7th Pay Commission, the fitment factor is 2.57. While fixing the salary of central employees, apart from allowances like Dearness Allowance (DA), Traveling Allowance (TA), House Rent Allowance (HRA), the basic salary is calculated by multiplying the fitment factor by 2.57.
For example- if the basic salary of a central employee is Rs 18,000, then excluding allowances his salary will be 18,000 X 2.57 = Rs 46,260. If the fitment factor is 3 then it will definitely be beneficial. There has been a long standing demand of the employees that the fitment should be increased.
Calculation of Allowances (DA Calculation)-
When the salary of central government employees is fixed without allowances, then after this various types of allowances are added, like DA, TA, HRA. DA is given to central employees to protect them from losses due to inflation. It is decided twice a year. The first time is fixed for the period from January to June and the second time for the period from July to December.
Contribution of EPF, Gratuity-
When all types of allowances and salaries are finalized, it comes to Provident Fund (PF) and gratuity contribution. Contribution in PF and gratuity is decided on the basis of basic salary and DA. After this, all the allowances and deductions are made from CTC and then the take home salary of the central employee is formed.
