The minimum salary of government employees salaries is expected to be increased after the presentation of the Union Budget 2023. Finance Minister Nirmala Sitharaman is scheduled to deliver the Budget Speech for 2023 on February 1, Zee News Hindi has reported. Parliament’s budget session will begin on January 31. According to reports, it is believed that the government may revise the fitment factor of the government employees salaries. As of now the common fitment factor stands at 2.57 times.
Read More: RBI imposes penalty of Rs 30L on Delhi-based Bahadur Chand Investments
The government employees have been demanding the government to hike the fitment factor to 3.68. The increase will raise the wage from Rs 18,000 to Rs 26,000.
Government employees argue that even after the increase in DA, there should be an increase in the basic salary because the salary increases on this basis. Earlier it was reported that the central government is also likely to hike the dearness allowance (DA) of government employees in March 2023, effective January 1.
7th Pay Commission: Here is the calculation after probable hike in fitment factor
If the government increases the fitment factor 3 times, then the salary of the employees excluding allowances will be 18,000 X 2.57 = Rs 46,260. At the same time, if the demands of the employees are accepted, then the salary will be 26000 X 3.68 = Rs 95,680. If the government accepts 3 times fitment factor, then the salary will be 21000 X 3 = Rs 63,000.
Read More: Which are 4 states to restore old pension scheme (OPS) for their employees?
7th Pay Commission: Govt hikes DA by 4 percent to 38 percent
The Union Cabinet had on 28 September 2022, approved the release of additional instalment of Dearness Allowance and Dearness Relief @ 4 percent to Central Government employees and pensioners due from 01.07.2022 based on the percentage increase in 12 monthly average of All India Consumer Price Index for the period ending June, 2022.
The Central Government employees and pensioners will become entitled to higher amount of Dearness Allowance and Dearness Relief respectively, w.e.f. 01.07.2022.
The additional financial implications on account of this increase of Dearness Allowance to Central Government employees are estimated at Rs.6,591.36 crore per annum; and Rs.4,394.24 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).
The additional financial implications on account of this increase of Dearness Relief to pensioners are estimated at Rs.6,261.20 crore per annum; and Rs.4,174.12 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).
