7th Pay Commission Latest News Today: Speculations are rife that the Narendra Modi-led may announce massive DA hike for central government employees in July 2023. Though an official confirmation is awaited, several business websites have claimed that the government is considering to increase the dearness allowance (DA) by 3% to 4% from July 1, 2023. The current DA for government employees stands at 42%.
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Earlier in March, the Union Cabinet had announced a hike in dearness allowance (DA) and dearness relief (DR) by 4% from 38% to 42% with retrospective effect from 1 January 2023. The hike had benefitted approximately 48 lakh central government employees and 70 lakh pensioners. If the latest reports come true, and DA is hiked by 3 to 4%, it will rise to 45 to 46% of the basic pay of the government employees. It will give a much-needed relief to these employees and pensioners, who are facing rising inflation.
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7th Pay Commission Latest News Today: Will Govt Revise The Fitment Factor?
The fitment factor is a multiplier that is used to calculate the basic salary of central government employees. The current fitment factor is 2.57, which means that the basic salary is 2.57 times the minimum pay. Though nothing has been confirmed as of now, reports claimed that the government is mulling to increase the fitment factor to 3.68, which would result in a significant increase in the basic salary of central government employees.
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The fitment factor was introduced in the 7th Pay Commission in 2017. The main purpose of the fitment factor was to increase the basic salary of central government employees and to bring it in line with the salaries of employees in the private sector.
