A new announcement released by the Central Government says that the salary of government employees is probable to increase with a hike in Dearness Allowance (DA) and Dearness Relief (DR) under the 7th Central Pay Commission (CPC). The Government is predicted to revise its salary modifications after this Holi, i.e. March 8, revising the fitment factor in March 2023.

The Current Scenario

Currently, the common fitment factor is at 2.57%. If an employee receives Rs 15,500 in 4200 Grade Pay, they will receive a total pay of Rs 39,835 by multiplying Rs 15,500 into 2.57, according to the 6th Central Pay Commission. Previously, the 6th pay commission had suggested the fitment ratio at 1.86 %, while the 7th CPC acclaimed 2.57%, at which the Central government employees are currently paid. 

Currently, the central government employees request that the fitment factor be climbed to 3.68%. If their demand is acknowledged, then this would lead to a minimum wage of Rs 18,000 being augmented to Rs 26,000.

What is Central Government’s Plan?

Besides, the Centre is anticipated to upsurge the DA from 38% to 42% this March. Once the DA is climbed, the new salary would be operative from January 2023. On the other hand, the Central Government is predictable to increase DA and DR for pensioners and give 18-month DA arrears to the central government employees.

The Central government employees must remember that the dearness allowance (DA) and dearness relief (DR) are revised twice a year, effective January 1 and July 1. In September 2022, the Centre augmented the DA and DR of the employees who promoted about 48 lakh central government employees and 68 lakh pensioners. The DA was hiked by 4% to 38% last year. Previously, the Centre had elevated the DA by 3% to 34% in March under the 7th Pay Commission.