Central Government Employees May Witness a Salary Hike Soon
The central government employees in India may be in for a pleasant surprise as the government is mulling over increasing their salary for the second half of 2023. Reports suggest that besides an increase in the Dearness Allowance (DA), the government may also make a significant announcement on the fitment factor. For the first half of 2023, the DA was increased by four percent.
Below are some key points related to the expected salary hike:
Increase in Fitment Factor
According to sources, the government may announce an increase in the fitment factor, along with the DA hike. If this happens, it will result in a substantial increase in the basic salary of the employees. However, there has been no official announcement made by the government yet. Currently, the employees receive a fitment factor of 2.57 percent.
Minimum Salary
An employee with a grade pay of Rs 4200 receives a basic salary of Rs 15,500. In case there is an increase in the fitment factor, the employee’s total salary will be Rs.15,500X2.57 or Rs.39,835. The Sixth Central Pay Commission (CPC) had proposed an increase in the fitment factor by 1.86 percent. The employees are demanding an increase in the fitment factor to 3.68 percent. If this is implemented, the existing minimum wage of Rs 18,000 will increase to Rs 26,000.
DA Hike for Second Half
Apart from the possible increase in the fitment factor, the government may also increase the Dearness Allowance (DA) and Dearness Relief (DR) by four percent for the second half of 2023. The government had increased DA and DR by four percent for the first half of this year. If the DA is increased by four percent, it will become 46 percent, and the salary of the employees will also increase. The DA of the employees was increased by three percent in March 2022, following which it was increased from 31 percent to 34 percent. The DA has been increased twice by four percent since then.
Expected Salary Increase
If the DA of central employees becomes 46 percent, their salaries will also increase. For instance, if the basic pay of a central employee is Rs 18,000, and the DA is at 42 percent, it becomes Rs 7,560. However, if the DA increases to 46 percent in the second half, it will become Rs 8,280, resulting in an increase of Rs 720 per month in the salary.
The government generally approves the hike in DA for the second half in September or October. However, this year, the announcement may come in August. DA is a part of the salary structure of government employees, and the central government increases it in view of the inflation rate.
In conclusion, the expected salary hike for central government employees is likely to bring some relief to the workforce that has been facing the heat of inflation and rising prices.
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