Central government employees are likely to get a raise very soon, close on the heels of an increment they got in the form of a bump in dearness allowance (DA), home rent allowance (HRA) and travel allowance (TA).
The Government has decided to increase the fitment factor of government employees, which will increase their wages. This will also help raise the minimum wage of every employee in the New Year.
This surprise gift has been bestowed upon them after repeated demands for a hike in the fitment factor from 2.57 per cent to 3.68 per cent.
The decision to increase the fitment factor in accordance with the recommendations of the 7th Pay Commission, will be finalised by the government before the union budget 2022 meeting, so that it can be added to the expenditure of the budget.
Currently, the employees receive a salary based on the 2.57 per cent fitment factor. That means, the basic salary is Rs 18,000. An increase in fitment factor will result in the basic being hiked by Rs 8000, thus taking the total to Rs 26,000 per month as basic pay for everyone serving the Government.
The Government had increased the DA of its employees in July 2021. However, employees have been demanding that the revised DA be applied with effect from January, 2020.
Due to the pandemic-induced financial pressures and constraints, the Government had held back the payment of dearness allowance in 2020.