After giving a hike in the form of dearness allowance, HRA and TA as a Diwali gift to its employees, now the central government is mulling over another bumper increment on the new year.
Increment In The Fitment Factor
According to the recommendation of the 7th pay commission, this increment is most likely to come as an increase in the fitment factor, the minimum wage, or the basic salary of the central government employees.
So far, the people, working under the central government, have been requesting the authorities to increase the fitment factor from 2.57 percent to 3.68 percent.
Reportedly, this decision is likely to be taken before the presentation of Union Budget 2022.
How Does It Help?
Once this gets a green signal from the Union Cabinet, the increment will be included in the expenditure of the upcoming budget.
This move will not only increment the fitment factor in central government employees’ salaries but will also result in a rise in the minimum wages of central government employees.
At present, the salaries are calculated at the fitment factor of 2.57 percent, this way basic salary is RS 18,000.
If the government agrees to the proposed 3.68 percent fitment factor then the basic salary will move up by Rs 8000 and reach a Rs 26,000 level.
Relief To Lakhs Of Employees
The cabinet secretary had assured about the increment in the fitment factor during the previous dialogues between central government employees and government representatives.
If this happens then the increment is going to bring huge relief for lakhs of central government employees.
In the meantime, the government could hold a meeting with the employees representative organization to take the final call on the pending arrear issue in the DA increment.
The central government had withheld the payment of DA in 2020 due to financial troubles caused by the COVID-19 pandemic.
Although the DA payment returned with an increment in July this year, but employees have been demanding the application of revised rates as per the previously proposed dates.
So far, the government has been communicating with the employees regarding their concerns however, a final outcome is yet to come.
 If the government comes to the decision to pay the DA arrears, it will bring a huge relief to thousands of employees and pension holders.
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