The new year is all set to start on a good note for Central government employees as there is a news related to their salary in 2023. According to media reports, the government is likely to take a decision about three major issues – DA and DR hike, fitment factor revision, and clearing 18-month DA arrears.
For the unversed, Dearness allowance (DA) and dearness relief (DR) are revised twice a year, effective January 1 and July 1. The last hike raised the DA by 4 percent to 38 percent. Earlier, in March, the government had raised the DA by 3 percent to 34 percent under the 7th Pay Commission.
DA hike in 2023
Media reports state that the DA and DR could be raised by 3-5 percent in March 2023, effective from January next year. With this hike, the DA will increase up to 43 percent.
News on 18-month arrears
The issue of 18-month DA arrears payment from January 2020 to June 2021 may also be addressed soon and the employees may get the payment of an 18-month DA arrear.
Fitment factor to be revised
Central government employee unions have been demanding for a long time to increase the minimum wage from Rs 18,000 to Rs 26,000 and increase the fitment factor from 2.57 times to 3.68 times. If the government announces an increase in the fitment factor of central employees, then their salaries will increase.
If the fitment factor is increased to 3.68, then the basic pay of the employees will be Rs 26,000. Right now if your minimum salary is Rs 18,000, then excluding allowances, you will get Rs 46,260 (18,000 X 2.57 = 46,260) as per the 2.57 fitment factor. Now if the fitment factor is 3.68 then your salary will be Rs 95,680 (26000X3.68 = 95,680).
